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Local Expert: Condo Owners Can Be In Financial Trouble For Not Paying Fees

PHILADELPHIA (CBS) - Banks and other lenders foreclosing on homeowners has been a story that has certainly dominated news headlines for several years now. What about those who do not pay their association fees? It is not as prevalent here as in other states but one local expert describes it as a growing problem.

Banks, credit unions and other lenders foreclosing on homeowners is certainly nothing new, but did you know that a condo owner who does not pay their association fees can find themselves in the same situation?

Phil Korb, a partner at Ballard Spahr, specializes in planned community and condominium practice. He explains that the association ultimately can place a lien against your property.

"It's important for people to understand that the homeowners association has tremendous power and you can't just ignore paying those assessments."

He says this situation puts the residents who do pay in a difficult situation.

"A Florida lawyer just recently told me that this assessment situation has gone from horrible to disastrous. They have community meetings where the police have to attend because of the anger among residents."

While this issue is not as prevalent in our area, Korb says it is a huge problem in Florida and California. He wants every condo owner to know that ignoring your association fees is not an option.

Reported by Michelle Durham, KYW Newsradio 1060

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