Why Paying Late Should be Avoided...at all costs

Although I am not in any way a supporter of the New York Times, the following piece does warrant reading and some thought. In my opinion, by all means avoid foreclosure. It has been reported that Funding institutions which by the way include many so called formidable banks, are drooling over foreclosure proceedings because they stand to make tons of money from the supporting entities who prop up the loan process, e.g. Insurance Companies. As the mortgagor struggles through attempts to make things right with their lender, the lender often times stalls the process and in many instances couldn't care less whether the borrower's intentions are honorable or not. Remember this...the lender during the current time in our so called "recovery" process stands to make lots of money by exploiting the difficulties many homeowners are having with making payments. Read on...

July 24, 2009, 3:14 pm
Why Paying Late Should Be Avoided
By Jay Romano

Q I live in a condominium in Long Beach, N.Y. Our management bills us $275 monthly for the common charge and imposes a $25 fee if the payment is late. I think this is excessive.

Please advise if this is legal and what limit is allowed by law.
A

“As is frequently the case in condominium buildings, the answer lies in the documents governing the condominium association,” said Todd Soloway, a Manhattan co-op and condominium lawyer.

“If the bylaws provide for the imposition of a late fee or if a late fee has been duly adopted by the board of managers pursuant to a resolution, then a late fee can certainly be charged,” he said, adding that there is no legal limit to such a fee.

At the same time, however, if the late fee was not properly adopted or included in the bylaws, then the reader can challenge the charge in court.

But, Mr. Soloway cautioned, “wrongful failure to pay an appropriately imposed late fee may provide the board of managers with the right to file a lien against the condominium unit. The board can sue for payment of the fee, and it may be able to include its legal expenses in the suit.”