Right to Foreclose laws are supposedly good for HOAs, so why are fees increasing?

News stories are beginning to appear concerning foreclosures, yet homeowner associations are increasing fees to cover losses anyway.

We’ve been told by CAI lobbyists time and time again that HOAs need the right to foreclose because it isn’t fair for “good” people to pay for deadbeats.  Yet, it appears that some HOAs are not collecting their debts from foreclosure sales and are  increasing fees anyway.  We know this is the common scenario because the mortgage company gets the $$ first and is not concerned about second position HOAs.  The HOA must bid the mortgage balance plus thier debt in order to collect, getting out of owning the home by reselling for a price slightly higher than what they had paid.  But HOA boards are not equipped to handle this financial manipulation, or to assume risks in the event they cannot resell the home. So, they do  nothing.  Say what??? Why, then, do they need to foreclose??INTIMIDATION . . . EXCESSIVE PUNISHMENT . . . . CONVENIENCE . . .

HOA attorney instigation for attorney “money machine” fees . . . not HOA financial interests.

Please understand that, contrary to what the video homeowner says, fines and late payments are “bonuses” to the HOA — extras above and beyond the actual monies owed to the HOA.  And don’t forget the HOA attorney fees that often exceed 100% of the actual HOA debt.

When will state legislators wake up to the fact that they have been mislead by HOA lobbyists for years?

See 9News.com “Foreclosures” from Colorado on my video web page.  (Plays after short TV commercial).

See http://www.signonsandiego.com/news/metro/20071101-9999-1n1dues.html including many comments.

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Published in: on December 11, 2007 at 8:45 am  Comments (1)  

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  1. […] Right to Foreclose laws are supposedly good for HOAs, so why are fees increasing? […]


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