Foreclosures

the Effects on Homeowners Associations And The Taxbase Delinquent fees at condo and homeowner associations are another result of the mortgage crisis. The increased foreclosure rate has negative connotations not just for associations but the entire tax base. In some parts of the country, but not limited to Newport Beach, California new communities have mandated associations. This reduces the infrastructure a city or municipality has to maintain. As foreclosures increase, associations are seeing a significant decrease in their income. As a result, many have upped the fees for those homeowners who remain…but many aren’t paying. As reported in the USA Today, associations don’t always get help from the banks and mortgage companies either. They state that “In 13 states, banks or mortgage companies generally must pay at least a portion of the delinquent community fees when they foreclose. In other states, the association’s only recourse may be to sue for unpaid fees, thereby racking up legal bills in what often turns out to be futile pursuit of dollars owed.” When an association has to pay legal bills, that money comes out of available funds. Aside from an increase in fees, how are communities feeling the effects? See properties in Orange County California with similar situation at Http://OCProperties.com

Cutbacks in services normally covered by the homeowners associations are being seen across the country.

Landscaping takes a big hit as the common areas aren’t mowed as frequently and flowers aren’t always planted. Planned improvements for the communities have been postponed or, in some cases, canceled. Volunteers are being recruited to help with neighborhood cleanup and maintenance in pools and recreation centers. In some areas, associations have been forced to temporarily cancel amenities such as trash removal, building maintenance and electricity. Homeowners are encouraged to pay attention to their association by-laws. Most associations have by-laws that should cover delinquent budget dollars and may even have significant reserves. Make sure you know the guidelines for fee increases in your communit.  More information can be found at Http://www.Camoves.com