Foreclosures and Homeowners Associations

Neighbors Kick Family Out of Home. “Foreclosures that end with the sale of a debtor's home have become surprisingly common in the Bay area and throughout Florida… according to Bob Tankel of Dunedin and Ron Cotterill of Tampa… two lawyers representing hundreds of homeowners and condo associations. Tankel estimates such cases have increased tenfold in the past four years, based on his firm's caseload. [Often] homeowners lose their properties over a few hundred dollars in delinquent homeowners assessments… Tankel, who said he represents as many as 600 homeowners and condo associations in Florida, has watched his collections business increase by 500% over the past four years.” (Tampa Bay Online, June 2nd)

Dangers Hidden In Homeowner Groups. California: “As of 2006, there were 906 homeowners associations in San Mateo County that maintain the common spaces of approximately 73,000 units in condominiums or single-family homes built in a neighborhood development. Some 59% of these units are more than 20 years old, according to a survey by industry CPA firm Levy, Erlanger and Co... As the units continue to age, more residents may find themselves facing pricey assessments if their complexes haven’t been managed well — or if the management has fallen into the wrong hands, experts say.” (Examiner.com, June 2nd)

Everybody Thought There Would Be No End To The Demand. Denver Post, Colorado: “Owners with units for sale in the Beauvallon building at East 10th Avenue and Lincoln Street are struggling to sell their units because a lawsuit against the developer is dissuading potential buyers and hanging up financing for anyone still interested. Of the 26 properties listed for sale in the 210-unit Beauvallon, 12 are either in foreclosure or listed for less than the seller owes on the mortgage.” “HOA dues for the penthouse units are more than $1,300/month, and fees for an 800-square-foot unit are nearly $400/month. Listing agent Emmett Carr: ‘People can’t afford the mortgage and the HOA.’” (Housing Bubble Blog, June 2nd)

Foreclosures Haunt Homeowners Groups In Lee County. Florida: “Foreclosures are [also] rocking… homeowners associations… Financially strapped residents or, in many cases, the lack of residents because of the growing foreclosures, simply aren’t paying their bills… Community Associations Institute: More than 60 million Americans live in an estimated 300,000 homeowner associations, condominium communities, cooperatives and other planned developments, up from 45 million residents in 223,000 communities in 2000… Joe Adams, News Press condo law columnist: In Southwest Florida, non-payment of fees is a problem mainly for newer projects that were built or converted from rentals in the real estate boom that reached its height in December 2005.” (News Press, June 1st)

Homeowners Associations Feel Pinch Of Foreclosures. “Over the past 18 months, Ted Whittington, a Bakersfield attorney who represents about 40 local homeowners associations, [has] seen an uptick in delinquent payments… Brighton Estates Homeowners Association and Seven Oaks at Grand Island Homeowners Association both filed lawsuits this year to collect delinquent dues… Andrew Schlegel, VP Finance for Merit Property Management Inc.: Some pinched California homeowners associations are considering shutting down clubhouses or decreasing the frequency of services… Others raised dues. One association, in Stockton, contemplated filing for bankruptcy protection. Schlegel estimates assessment delinquency rates have increased from a pre-housing bust figure of .25% to 5% today.” (Bakersfield Californian, May 31st)

GVR Board Rejects Fee. “Arizona: Green Valley Recreation's board of directors rejected a plan to charge homeowners’ associations $10 to rent a meeting room. Currently, GVR charges non-member organizations a rental fee, and the $10 for members was to help cover administrative scheduling costs… Leon Lies, who introduced the motion for the Fiscal Affairs Committee, said before the vote he was against the idea. He said it would “nickel and dime” the members.” (Green Valley News, May 31st)