HOA solvency/market problems

[sandiego]

It will be a huge issue moving forward.

All things considered, the HOA is pretty impotent in a down market. I don’t know exactly how you solve the issue if people don’t feel that they have to pay on an unsecured obligation.

[jpinpb]

Can you imagine being in that situation, one out of four owners being responsible, paying the mortgage and HOAs and other owners throwing in the towel. Those four owner stuck w/huge bills every monthrs, carrying the costs of others. That sucks and blows. What a mess. There must be some kind of regulation regarding this. It seems so wrong for this kind of situation to occur. There should be some alternative recourse when a situation like this arises. I mean, to have the threat of water being turned off. You need water.

The more and more I hear about HOAs, the more I am determined to avoid anything having to do w/them.

[jpinpb]

Can you imagine being in that situation, one out of four owners being responsible, paying the mortgage and HOAs and other owners throwing in the towel. Those four owner stuck w/huge bills every monthrs, carrying the costs of others. That sucks and blows. What a mess. There must be some kind of regulation regarding this. It seems so wrong for this kind of situation to occur. There should be some alternative recourse when a situation like this arises. I mean, to have the threat of water being turned off. You need water.

The more and more I hear about HOAs, the more I am determined to avoid anything having to do w/them.

[jpinpb]

Can you imagine being in that situation, one out of four owners being responsible, paying the mortgage and HOAs and other owners throwing in the towel. Those four owner stuck w/huge bills every monthrs, carrying the costs of others. That sucks and blows. What a mess. There must be some kind of regulation regarding this. It seems so wrong for this kind of situation to occur. There should be some alternative recourse when a situation like this arises. I mean, to have the threat of water being turned off. You need water.

The more and more I hear about HOAs, the more I am determined to avoid anything having to do w/them.

[jpinpb]

Can you imagine being in that situation, one out of four owners being responsible, paying the mortgage and HOAs and other owners throwing in the towel. Those four owner stuck w/huge bills every monthrs, carrying the costs of others. That sucks and blows. What a mess. There must be some kind of regulation regarding this. It seems so wrong for this kind of situation to occur. There should be some alternative recourse when a situation like this arises. I mean, to have the threat of water being turned off. You need water.

The more and more I hear about HOAs, the more I am determined to avoid anything having to do w/them.

[jpinpb]

Can you imagine being in that situation, one out of four owners being responsible, paying the mortgage and HOAs and other owners throwing in the towel. Those four owner stuck w/huge bills every monthrs, carrying the costs of others. That sucks and blows. What a mess. There must be some kind of regulation regarding this. It seems so wrong for this kind of situation to occur. There should be some alternative recourse when a situation like this arises. I mean, to have the threat of water being turned off. You need water.

The more and more I hear about HOAs, the more I am determined to avoid anything having to do w/them.

[sandiego]

At least when the developers/banks are still involved selling units, they have a vested interest in maintaining the property. I think most problems start occurring a year or two after the project sells out.

Living in a building downtown with less than 150 units, I see how difficult it is to get proxies and majority votes to get things done. I can’t imagine how it will be for the huge developments (300-700 units) to get anything done.

[sandiego]

At least when the developers/banks are still involved selling units, they have a vested interest in maintaining the property. I think most problems start occurring a year or two after the project sells out.

Living in a building downtown with less than 150 units, I see how difficult it is to get proxies and majority votes to get things done. I can’t imagine how it will be for the huge developments (300-700 units) to get anything done.

[sandiego]

At least when the developers/banks are still involved selling units, they have a vested interest in maintaining the property. I think most problems start occurring a year or two after the project sells out.

Living in a building downtown with less than 150 units, I see how difficult it is to get proxies and majority votes to get things done. I can’t imagine how it will be for the huge developments (300-700 units) to get anything done.

[sandiego]

At least when the developers/banks are still involved selling units, they have a vested interest in maintaining the property. I think most problems start occurring a year or two after the project sells out.

Living in a building downtown with less than 150 units, I see how difficult it is to get proxies and majority votes to get things done. I can’t imagine how it will be for the huge developments (300-700 units) to get anything done.

[sandiego]

At least when the developers/banks are still involved selling units, they have a vested interest in maintaining the property. I think most problems start occurring a year or two after the project sells out.

Living in a building downtown with less than 150 units, I see how difficult it is to get proxies and majority votes to get things done. I can’t imagine how it will be for the huge developments (300-700 units) to get anything done.

[cv2]

The strategy we used is to use our junior lien to force the foreclosure as soon as possible. As many of you have said, nowadays it is not good to be a junior. By forcing the foreclosure you are speeding up the process tremendously because banks are swamped with NOD and are not proceeding to foreclosure. This is also a trick on the bank because that’s unrealized loss (or maybe uncollected interest) vs real loss on the book. Once it is foreclosed, you can start collecting HOA dues on the new owner. Banks can’t sell it until the HOA dues are current.

Granted lawyers are expensive but in the long run it will save HOA money. Also as a matter of principle, if you live here, you have to be responsible and do not expect others to take your burdens.

[cv2]

The strategy we used is to use our junior lien to force the foreclosure as soon as possible. As many of you have said, nowadays it is not good to be a junior. By forcing the foreclosure you are speeding up the process tremendously because banks are swamped with NOD and are not proceeding to foreclosure. This is also a trick on the bank because that’s unrealized loss (or maybe uncollected interest) vs real loss on the book. Once it is foreclosed, you can start collecting HOA dues on the new owner. Banks can’t sell it until the HOA dues are current.

Granted lawyers are expensive but in the long run it will save HOA money. Also as a matter of principle, if you live here, you have to be responsible and do not expect others to take your burdens.

[cv2]

The strategy we used is to use our junior lien to force the foreclosure as soon as possible. As many of you have said, nowadays it is not good to be a junior. By forcing the foreclosure you are speeding up the process tremendously because banks are swamped with NOD and are not proceeding to foreclosure. This is also a trick on the bank because that’s unrealized loss (or maybe uncollected interest) vs real loss on the book. Once it is foreclosed, you can start collecting HOA dues on the new owner. Banks can’t sell it until the HOA dues are current.

Granted lawyers are expensive but in the long run it will save HOA money. Also as a matter of principle, if you live here, you have to be responsible and do not expect others to take your burdens.

[cv2]

The strategy we used is to use our junior lien to force the foreclosure as soon as possible. As many of you have said, nowadays it is not good to be a junior. By forcing the foreclosure you are speeding up the process tremendously because banks are swamped with NOD and are not proceeding to foreclosure. This is also a trick on the bank because that’s unrealized loss (or maybe uncollected interest) vs real loss on the book. Once it is foreclosed, you can start collecting HOA dues on the new owner. Banks can’t sell it until the HOA dues are current.

Granted lawyers are expensive but in the long run it will save HOA money. Also as a matter of principle, if you live here, you have to be responsible and do not expect others to take your burdens.

[Author]

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