That is exactly the point. 6k on one unit. Multiply that by however many units. Banks are dragging their feet for many months beyond the customary 3 months to foreclose. That’s money not going to the HOA. And probably the HOA won’t go after the former owner, true. And junior liens nowadays won’t get paid b/c properties in foreclosure have been selling far less than what is owed.
It’s a problem that I have not seen or heard discussed much. It came up on a thread about a property in Escondido that was 70% off peak and SDR mentioned the HOAs were insolvent.
In the situation w/the four owners in the complex carrying the costs while other owners continue to live there, that’s a real dilemma.
And so I ask, if things continue to go bad and people walk just b/c of depreciating asset, even if they are capable of paying, then perhaps this issue will come up in other complexes that have HOAs.
