Association fees another casualty of meltdown | ajc.com: "Foreclosures have a devastating impact on community associations that is not felt by other creditors. A foreclosure wipes out the assessments/dues owed on the property. A foreclosure does not have that effect on credit cards, auto loans and other consumer finance products — those debts remain intact.

Bankruptcies, however, affect associations the same as other creditors. If liens are in place, an association is a secured creditor and will be repaid as a creditor in a Chapter 13 filing with all the other creditors — up to five years.

Rising bankruptcies, foreclosures and unemployment have formed a perfect storm that is going to hit community associations. Rather than wind and water damage, owners will be hit by a cut in maintenance and services — landscaping, paint, roofs, lighting, concierges, parking attendants, tennis instructors, on-site staff and swimming pools, if they can be filled. That will result in a further decline in resale prices as purchasers shy away from associations that have lost their curb appeal. It will also result in a loss of business for vendors that provide services to community associations."

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This is from a piece by attorney George Nowack of Atlanta. He is very active with CAI. I say that because I don't often see from CAI members such a candid evaluation of the precarious situation CIDs are facing right now. The phrase "perfect storm" is probably accurate, I think.