Foreclosures hit HOA’s

[djrobsd]

As if this is any big surprise but…

http://www.signonsandiego.com/news/metro/20071101-9999-1n1dues.html

One of the most flawed things about the way HOA’s are set up, is that they stand to gain as long as the real estate market is appreciating, but in a depreciating market such as today, the HOA has no ground to stand on if the homeowner doesn’t pay their dues, since they have to “Get in line” with the rest of the creditors. Sure, they can put a lein on your house, but most homeowners have 2 mortgages already, so the HOA would then have the 3rd position, and of course, if property taxes aren’t paid, the HOA actually gets the 4th position… Good luck getting any money, meanwhile the rest of the homeowners who ARE Paying their dues have to suffer in the form of reduction of service, or worse yet, the HOA has to raise dues because let’s face it, the water bill and the insurance bill HAVE to be paid somehow.

[patientlywaiting]

Interesting.

Housing will have to drop in order to offset HOA increases/inflation. How much will buyers want to pay for a condo with $500 – $1000/month HOA?

Property taxes are coming due. If people are defaulting on HOA, you can bet they are defaulting on property taxes as well.

[patientlywaiting]

Interesting.

Housing will have to drop in order to offset HOA increases/inflation. How much will buyers want to pay for a condo with $500 – $1000/month HOA?

Property taxes are coming due. If people are defaulting on HOA, you can bet they are defaulting on property taxes as well.

[patientlywaiting]

Interesting.

Housing will have to drop in order to offset HOA increases/inflation. How much will buyers want to pay for a condo with $500 – $1000/month HOA?

Property taxes are coming due. If people are defaulting on HOA, you can bet they are defaulting on property taxes as well.

[patb]

Taxes are paid by the Mortgage servicer/bank.

The bank will pay this even if you aren’t paying them because they
don’t want a tax auction to occur. They will pay the taxes while they
foreclose your ass.

I think that the issue for local government is a sudden decrease in property values means that income growth is stagnating.

Now marginal crappy property in the hood may go direct to tax auction,
but it won’t occur to most places.

The local governments are addicted to rising property values.

[patb]

Taxes are paid by the Mortgage servicer/bank.

The bank will pay this even if you aren’t paying them because they
don’t want a tax auction to occur. They will pay the taxes while they
foreclose your ass.

I think that the issue for local government is a sudden decrease in property values means that income growth is stagnating.

Now marginal crappy property in the hood may go direct to tax auction,
but it won’t occur to most places.

The local governments are addicted to rising property values.

[patb]

Taxes are paid by the Mortgage servicer/bank.

The bank will pay this even if you aren’t paying them because they
don’t want a tax auction to occur. They will pay the taxes while they
foreclose your ass.

I think that the issue for local government is a sudden decrease in property values means that income growth is stagnating.

Now marginal crappy property in the hood may go direct to tax auction,
but it won’t occur to most places.

The local governments are addicted to rising property values.

[Author]

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