HB 879 Summary

• Authorizes planned community associations (chapter 421J) and condominium associations (chapters 514A and 514B) to conduct nonjudicial power of sale foreclosures for unpaid common expense liens, requiring attorney representation and specific notice procedures (21 days by mail, certified mail, and newspaper publication).

• Establishes owner-occupant protections including a single 45-day foreclosure stay if the owner notifies the association within 5 days of receiving notice and claims ability to pay all amounts due, with associations required to consider reasonable payment plans for 6-12 months.

• Allows associations to credit bid at foreclosure auctions up to the amount of their lien without requiring cash down payment; limits down payments from other bidders to 10 percent of successful bid price.

• Caps special assessments against subsequent purchasers of foreclosed units at $3,600 or the total unpaid regular assessments from the prior 6 months, whichever is less; exempts prior mortgage holders from this assessment.

• Requires mortgagees foreclosing on properties in condominiums or planned communities to notify the association, and suspends junior lienholder foreclosures while a senior mortgagee's foreclosure is pending.