What is the name of your state (only U.S. law)? FLORIDA
In March 2015, my home was Foreclosed on and title bought by the originator, Fannie Mae. Through a combination of my misreading of the Florida Statues and poor advice, I assumed up to 12 months of HOA fees would be paid by the final buyer (but I failed to read the full statute which includes "OR 1% of the mortgage, whichever is lesser"). Thinking I was clear of this and the fact I was (and currently still am) in financial distress, I stopped making HOA fees for a total of NINE (9) months (until the foreclosure was finalized / title issued). Apparently, Fannie Mae paid the HOA only 1% of the mortgage ($850), which left a balance on the nine (9) months of unpaid HOA monthly dues (from 7/1/2014 to 3/1/2015).
So, the HOA is suing me for the balance of those HOA Dues, plus interest, plus attorney fees, plus late fess, plus court costs (it is all in their complaint). My pre-trial Conference is this Friday (the 18th) and I will certainly be asking for mediation.
My questions are as follows:
(1) The INTEREST being charged in their own statement (I have a copy) makes no sense. In the statement, they specify "interest calculated on assessments only, not late fees, with a periodic interest rate of 18% and a monthly rate of 1.5%" ... their statement has nine months of unpaid monthly HOA fees at $260/mo which totals $2,340 (9 monhts). Keep in mind, I was current with my HOA fees since June 2014. Thus, technically, late fees/interest, to my knowledge, should not begin until August 2014 (July at the earliest). Their statement is charging a whopping and mathematically incorrect interest amortization total of $845. This could mean, even if I immediately started owing the full $2340 on July 2014, that THEIR interest charge (not compounded) is equivalent to a ~36% interest rate!!! My calculations for the true interest rate I would owe are much lower (I have a detailed month-to-month spreadsheet ready to present during pre-trial/mediation). So, besides presenting this hug discrepancy at mediation, is there anything else I can do to contest their error and possibly use this to my advantage in furthering my negotiation?
(2) Their statement does not account for the $850 payment towards the dues that Fannie Mae gave the HOA after Title was issued. if Title was issued on 4/1/2015, then should I not DEDUCT $850 in dues from their statement (essentially lessening the interest rate burden on the total owed since 4/1/2015). Any other charges (attorney fees, late fees, court costs) do not satisfy the statutory requirement for a common expense and are not collectible as part of the safe harbor statute. Thus, i assume the $850 (1% of the mortgage) payment that Fannie Mae gave them SHOULD go directly towards paying down the actual HOA dues. if this is correct, then my interest rate charge calculations will be less as well, Is this correct and can i argue this, too? Any specific laws or lingo i can use would be helpful.
(3) Their statement makes it clear that they are basing their outrageous interest charges ONLY for the period starting from 7/1/2014 to 3/1/2015 (which makes their total interest charge of $845 even MORE ridiculous. Thus, given that their COMPLAINT is specifically stating that their claim/suit is for that period only, can I not claim, as well, that they should only be requesting the PROPER interest amount for the period of 7/1/2014 to 3/1/2015; And NOT from 4/1/2015 to today's date? If they need to correct their claim then they need to cancel their claim and refile. So, am I correct in thinking this? Because if that is what their claim states, then the true compounded interest rate is MUCH less than what they claim.
(4) I am self employed and have no other property (my only possession is my car and it is significant to my self-employment and is only worth $1800 on Kelly Blue Book -- I own it outright). I have been in financial hardship for many years and have no immediate prospects; and live month to month. Thus, I am a terrible candidate for them to continue and get a judgment on me. However, I do have a relative that is willing to help me out but ONLY at 50% of their claim (I may or may not be able to get more). What are THE BEST steps / negotiating stance I can take to possibly reduce the total? besides the above "interest Charge" discrepancy, how can I negotiate to reduce or eliminate the other fees (attorney fees, court, late fees, etc). Should i start at 25% then HOPE they will negotiate at 50%? (As I have read in other threads).
All your help and advice would be greatly appreciated. Thank you so much for your time.
In March 2015, my home was Foreclosed on and title bought by the originator, Fannie Mae. Through a combination of my misreading of the Florida Statues and poor advice, I assumed up to 12 months of HOA fees would be paid by the final buyer (but I failed to read the full statute which includes "OR 1% of the mortgage, whichever is lesser"). Thinking I was clear of this and the fact I was (and currently still am) in financial distress, I stopped making HOA fees for a total of NINE (9) months (until the foreclosure was finalized / title issued). Apparently, Fannie Mae paid the HOA only 1% of the mortgage ($850), which left a balance on the nine (9) months of unpaid HOA monthly dues (from 7/1/2014 to 3/1/2015).
So, the HOA is suing me for the balance of those HOA Dues, plus interest, plus attorney fees, plus late fess, plus court costs (it is all in their complaint). My pre-trial Conference is this Friday (the 18th) and I will certainly be asking for mediation.
My questions are as follows:
(1) The INTEREST being charged in their own statement (I have a copy) makes no sense. In the statement, they specify "interest calculated on assessments only, not late fees, with a periodic interest rate of 18% and a monthly rate of 1.5%" ... their statement has nine months of unpaid monthly HOA fees at $260/mo which totals $2,340 (9 monhts). Keep in mind, I was current with my HOA fees since June 2014. Thus, technically, late fees/interest, to my knowledge, should not begin until August 2014 (July at the earliest). Their statement is charging a whopping and mathematically incorrect interest amortization total of $845. This could mean, even if I immediately started owing the full $2340 on July 2014, that THEIR interest charge (not compounded) is equivalent to a ~36% interest rate!!! My calculations for the true interest rate I would owe are much lower (I have a detailed month-to-month spreadsheet ready to present during pre-trial/mediation). So, besides presenting this hug discrepancy at mediation, is there anything else I can do to contest their error and possibly use this to my advantage in furthering my negotiation?
(2) Their statement does not account for the $850 payment towards the dues that Fannie Mae gave the HOA after Title was issued. if Title was issued on 4/1/2015, then should I not DEDUCT $850 in dues from their statement (essentially lessening the interest rate burden on the total owed since 4/1/2015). Any other charges (attorney fees, late fees, court costs) do not satisfy the statutory requirement for a common expense and are not collectible as part of the safe harbor statute. Thus, i assume the $850 (1% of the mortgage) payment that Fannie Mae gave them SHOULD go directly towards paying down the actual HOA dues. if this is correct, then my interest rate charge calculations will be less as well, Is this correct and can i argue this, too? Any specific laws or lingo i can use would be helpful.
(3) Their statement makes it clear that they are basing their outrageous interest charges ONLY for the period starting from 7/1/2014 to 3/1/2015 (which makes their total interest charge of $845 even MORE ridiculous. Thus, given that their COMPLAINT is specifically stating that their claim/suit is for that period only, can I not claim, as well, that they should only be requesting the PROPER interest amount for the period of 7/1/2014 to 3/1/2015; And NOT from 4/1/2015 to today's date? If they need to correct their claim then they need to cancel their claim and refile. So, am I correct in thinking this? Because if that is what their claim states, then the true compounded interest rate is MUCH less than what they claim.
(4) I am self employed and have no other property (my only possession is my car and it is significant to my self-employment and is only worth $1800 on Kelly Blue Book -- I own it outright). I have been in financial hardship for many years and have no immediate prospects; and live month to month. Thus, I am a terrible candidate for them to continue and get a judgment on me. However, I do have a relative that is willing to help me out but ONLY at 50% of their claim (I may or may not be able to get more). What are THE BEST steps / negotiating stance I can take to possibly reduce the total? besides the above "interest Charge" discrepancy, how can I negotiate to reduce or eliminate the other fees (attorney fees, court, late fees, etc). Should i start at 25% then HOPE they will negotiate at 50%? (As I have read in other threads).
All your help and advice would be greatly appreciated. Thank you so much for your time.
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