This month, our firm successfully recouped several years of past due common charges pursuant to RPAPL §1308(4)(k), otherwise known as the Zombie Law.
A condominium unit located within an HOA had been vacant since the owners died. Pursuant to this law, our firm put the Bank on notice that the unit was “vacant and abandoned” and that the Bank was responsible for the maintenance fees.
After the Bank foreclosed on the unit and scheduled the unit for sale to a third party, the Bank pushed back and refused to pay the arrears, claiming that their foreclosure cut off any obligation to pay arrears owed prior to the Judgment of Foreclosure and Sale.
This community refused to back down and successfully defeated a motion for a declaratory judgment. After nearly two years, the community received a check for all past due arrears and legal fees.
Banks are not able to subvert their statutory obligations if a unit is vacant and abandoned and they are put on notice of such.
The lesson of this case is to make sure that mortgagors are always provided written notice of their obligations pursuant to RPAPL §1308.
BOARDS: Just a reminder, please let us know if units become vacant so that we can properly guide you.