Jun 12 2008

Common Ownership Communities Facing Foreclosure

Published by Carolyn Thompson at 9:27 am under Real Estate

Common ownership communities are facing foreclosures at alarming rates.  As home owners face foreclosure, many leave without paying their association dues.  Many homeowner associations are stating that these owners fall several months behind on their dues before bankruptcy and foreclosures.

 

If the properties go back to the banks, shouldn’t the banks pay the back dues?  This is not always the case, as most laws don’t force the banks to take responsibility for the late payments.

 

The net result is that the associations have to carry the burden of the debt.  This fee may be assessed among the current association members at one time or spread over a period of time.  How much will the increase be?

 

Home owners in associations can only afford to take on so much debt.  Their fees keep going up and then, they themselves can’t afford to hold onto the property.

 

Check with your state government to see what the laws are and take an active part in becoming informed and being a part of the solution.  If this process is left up to other people, no one will take a stand for change and everyone could be affected adversely.

 

Possible Solutions:  It is possible that the states could force association dues to be the responsibility of the lender.  The lender in turn would force the homeowner to keep the funds in an escrow account like the taxes and insurance.  How is it possible that the state governments can pass this law?  If they state that the association dues are to take first debt position over a mortgage, just as taxes are the mortgage companies would then take the initiative to make sure the dues are paid.

 

2 Responses to “Common Ownership Communities Facing Foreclosure”

  1. Thelma Lewison 24 Jul 2008 at 7:47 pm

    Carolyn,

    This article has enlightened our community!

    Thank you for sharing this information.

    Sincerely,

    Thelma Lewis

  2. Carolyn Thompsonon 23 Aug 2008 at 12:16 am

    It is about time that someone speaks honestly about the housing situation and stops trying to take advantage of the home buyer and seller

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