Posts Tagged ‘Collections’

Lien Powers = Big Brother?

January 11, 2013

It is not news that some folks really don’t like homeowner associations.  They equate enforcing the written covenants and assessments with “small government oppression” and “Big Brother” tactics.

So I only mention this soft-news opinion piece from “Realty Biz News”  because I like the Orwell cartoon it used, below.    Ironically enough the cartoon was borrowed, perhaps from a health care law critique, without much attention to the details.  If this cartoon really were of an HOA, one would hope the windows and exteriors in the building pictured would be better maintained.

Image courtesy of Fugue

 

While the article’s analysis is accurate, beware of the comments section, which is a bit misleading.

 

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Foreclosing on the Forecloser: HOAs take on the banks

August 13, 2012

For most homeowners, foreclosure is the end of the story.  The end of a long, painful story, for most.

 

A slideshow on foreclosure and bankruptcy law basics

 

But many homeowner associations could only hope that foreclosure were the end of the story.  For HOAs, foreclosure usually follows a lengthy period of unpaid assessments, collection efforts, and perhaps ongoing maintenance violations.  The foreclosing bank may even have dragged its feet on taking title until it had a post-foreclosure buyer lined up.  I have tried to summarize foreclosure basics for HOAs here.

In Idaho, this tactic leads to increased liability for the original owners of the property, and probably increased chances of bankruptcy.  For the most part, the bank that takes title following a foreclosure is responsible and pays assessments from the date of the foreclosure forward. However, this is not always the case.

In what is often a David and Goliath story, some HOAs are seeking to even the odds by foreclosing against the bank on their post-foreclosure assessments.  This article makes several good points about the pros and cons of this approach, and the position taken by banks.  It applies as well in Idaho as in Florida.

 

Most of the bank in possession has a strong interest in maintaining clear title so that the property can be sold.  Foreclosure, though a drawn-out and relatively expensive process, puts the pressure back on the bank to get current.

Jeremy O. Evans