If this is so unfair to other homeowners. A irresponsible person bought at the top of the market. He got a zero-down ARM and rent it out. When the market goes down, he just stop paying HOA fee and property taxes while taking in rents. All he need to do is to pay his mortgage and he will forever live off other homeowners unless the market recovers.
Let’s say HOA got the house and have no intention to pay the mortgage because the mortgage is not even in HOA’s name. What will happen now? I assume the mortgage holder could foreclose now. How would this affects the HOA? Does the HOA have credit scores, like us regular folks? Can the mortgage has any recourse against the HOA?
