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Some residents in homeowner associations are upset Thursday after an investigation revealed banks that own properties are failing to pay their mortgages and dues. The failure to pay means people like Mike Parades, a Keys Gate resident, are forced to pick up the tab.
Some residents in homeowner associations are upset Thursday after an investigation revealed banks that own properties are failing to pay their mortgages and dues.
The failure to pay means people like Mike Parades, a Keys Gate resident, are forced to pick up the tab.
“Well it just goes to show you that integrity and banking don't go together,” Parades said. “It’s like oil and water.”
Parades expressed his frustration over what's happened in his Homestead community. He said the neighborhood is now dotted with town homes owned by banks that don't pay their association dues.
“That was surprising,” Parades said. “The lender themselves not doing what they are supposed to do. That's very surprising.”
Court records indicated Chase Bank was $18,000 behind in payments for one unit in the complex. Parades and other residents filed a lawsuit in an effort to get the badly needed funds restored.
“Simply painting the buildings, we can't do that,” he told NBC 6 South Florida.
The residents said Chase Bank then sold the unit. The two men who bought it told NBC 6 South Florida they had no idea the bank hadn't paid the bill until this lawsuit was delivered to their doorstep Wednesday.
“It's a widespread problem throughout Florida,” said attorney Ben Solomon. “We already filed 1,100 liens against banks for their failure to pay maintenance fees after they take title to units through foreclosure, and what that does is pass that share of maintenance on to the homeowners of the community the banks share, which is completely unfair.”
Legal action to recover thousands of dollars in unpaid dues has also been taken against lenders like Bank of America, Deutsche Bank, and the Bank of New York.
Deutsche Bank didn't return calls to NBC 6, while the Bank of New York said the loan servicer should be responsible for the fee payment. Chase Bank said it would look into the issue.
“We have no record of request for payment and we’re unaware of outstanding dues owed to the Keys Gate Association,” Chase Bank said. “We are researching this loan to determine what, if any, dues are owed for the period of time we held title and will immediately pay any outstanding balance.”
Bank of America has not responded to calls.