Wednesday, December 02, 2009
Home Owners Association Struggle
We have written previously about the how condos got so cheap and impact to home owners associations (HOA). This phenomenon of non-paying homeowners has been happening for years, as people stopped paying for their mortgages they subsequently stop paying the HOA fees. As as result the condition of commmunities diminished and fees have gone up in an effort for HOA to keep things up and running. Several months ago, I was surprised to hear that legislation did not pass the change to make foreclosures pay all past HOA dues when they sell the property. The foreclosures only pay only the past 6 months of delinquency dues, then HOA ends up writing off the balance, with less money to keep things going. HOA however, have the right to foreclose on a property when the owner is not paying, but very, very few have excercised right to do this due to more expenses and legal fees to spend. However, the Orlando Sentinel produced an article, to my surprise, in which HOA's are taking foreclosure action. To read more about this article please click here.