HOA foreclosures are becoming more and more common these days. Tired of putting up with late dues
and mounting maintenance bills, some homeowner associations are motivated by spite and revenge, instead of sound business sense, to foreclose on delinquent owners.
I believe that taking title to a property for a few thousand dollars in unpaid association fees is just wrong and isn’t the best answer.
Here in Orlando a Home Owner Association will only receive 1 year worth of payments if the property goes to foreclosure sale. Sow why are soo many Associations initiating the foreclosure before the lenders even do?
Here’s what I think, HOAs are fed up with being playing fiddle to the lenders. It used to be that HOAs were easy to work with. If someone was behind on their HOA dues it was no big deal. If the seller owed ten thousand dollars in delinquent HOA dues, experienced Orlando realtor could usually get them to accept one to two thousand dollars and they would only get paid at the closing table.
The fact is a lot of members aren’t paying because they haven’t seen that the associations mean business, Associations are now very educated on the subject. Now they are getting serious about it and moving towards foreclosure much faster and many times, beating the lenders to the punch.
Because it’s easier for an association to foreclose than a bank [no proof of ownership necessary, no issue with robo-signed documents ] real estate attorneys say that the biggest reason for the increase in HOA foreclosures is that HOAs are tired of getting pushed around and are now pushing back with a vengeance.
Orlando Homeowner Associations getting rental income from foreclosed houses
There’s another reason why HOA’s are foreclosing way before the lender does. When the homeowner association forecloses and takes title to a home, they rent it out until the bank forecloses as the primary lien holder. With banks taking years to foreclose on some properties, the board can collect thousands of dollars by the time the bank gets around to foreclosing.
I’ve seen with some of my own clients that HOA boards will even implore tactics such as taking away there gate key forcing them to park outside the community and walk.The fact is that many times the HOA will push for foreclosure out of spite even when there are other options available.
If you happen to find yourself in a similar situation with your HOA, then you should consult with an Orlando Realty Expert. It doesn’t cost you anything and you may find the solution to your problem
