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WASHINGTON-A court in Broward County, Fla., has confirmed a legal strategy dubbed the "Mortgage Terminator" by the Miami Beach law firm which invented it as a viable method for protecting condominium and homeowner associations struggling to deal with the impact of foreclosures in their communities.
The tactic comes into play after an association forecloses on the owner of a unit to collect unpaid dues and/or assessments. Once the association takes title, the ploy requires the holder of the first mortgage to either initiate its own foreclosure proceeding against the dwelling or release it's mortgage so the association can sell the unit to cover what it is owed.
In the...