The only real solution to the HOA foreclosure fiasco

Given the current dismal state of affairs with our economy, and the increasing rate of HOA/condo foreclosures, I have been doing a lot of serious pondering (ahem!) on this major threat to the survival of HOA-land.   I think I hit upon the only real solution to the HOA foreclosure problem, taking a cue from the federal government bailout of the mortgage industry, banks, and GM.  I am not proposing another government bailout.  Oh no!

 Instead, I’m proposing a private corporation bailout.  You know, like the Bank of America bailout of Merrill Lynch, etc.   But, the major obstacle to this plan was, WHO?  I thought and thought of candidates.  In these dire circumstances it had to be a “true believer”,  a corporation that had faith in HOA-land, and one that would fight tooth and nail to preserve HOA-land from collapse.  Only one stood out, loudly and clearly:   Community Associations Institute (CAI).  But, would they?

 I pondered a little more, just a little more, and the answer was an obvious, thunderous, “Yes they would!”   Isn’t CAI promoting the adoption of UCIOA, that national top-down imposition of separate laws for HOA-landers? Doesn’t it already have  cadres lobbying to protect HOAs against constitutional encroachments in every state? I recently explained how this national organization, once an educational organization, reformed themselves into a business trade organization in order to be able to lobby state legislatures in order to protect HOA-land.

 In short, CAI has been setting itself up as the national private authority, a sort of Board of National HOA Governors, on local community governance through the adoption of uniform planned community acts that perpetuate the current anti-American HOA governments. In effect, the super, privatized agency to replace the US Constitutional system of government. (Part II, The Foundations of HOAs).

 It is not far-fetched that CAI, with all its political influence, would jump at the chance to bailout HOAs.  And, in exchange for its financial assistance, there is the standard, business quid pro quo:  control of the industry by controlling the individual HOA boards of directors.  Yes, unlike banks, CAI does have people in place to manage and oversee CAI’s interests, like any other takeover corporation.  The $$$$?  That’s easy to come by.  All CAI has to do is to strengthen its binding agreements with the lenders and FHA, Fannie May and Freddie Mac. No problem here!  Isn’t this the modus operandi currently behind PUD statements and the 20 – 30 year restrictions on terminating an HOA?  As investors would say, It’s a done deal!

 I think this is a win-win solution.  Everyone would be happy.  As for lack of constitutional protections and secessionist philosophy, c’mon, get with it!  Nobody cares about that, especially the politicians.  Trust me.  It would be a done deal.

Would someone please let CAI know — quickly.

Published in: on July 22, 2009 at 9:24 am  Leave a Comment  

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