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Protecting the Interests of Bank Shareholders versus Condo Association Members
June 14, 2010 - Sylvia Heldreth
Bank stocks are held by shareholders and these investors deserve to have their interests protected by the bank's Board of Directors and management. Community associations are nonprofit entities but they were established to protect the interests, especially the property, of condo and homeowners associations' members.
Condo owners are going into foreclosure. Banks are dragging their feet to minimize the fees they must pay to the associations once they foreclose. Associations are losing the revenue they need to maintain associations' and homeowners' properties.
Some associations have given up title to foreclosed units in a "reverse foreclosure" forcing the bank to take ownership and start paying. If there are a sufficient number of these, bank shareholders will see reduced profit. Associations need to protect their stream of revenue. Banks need to protect their investors.
What do you think?
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