HOA fees go unpaid: "Despite its crisp appearance, including lavish water fountains and well-kept greens, the Villages at Rancho El Dorado Homeowners Association in Maricopa struggles to pay its bills.
Like several HOAs across the state, more than 30 percent of its residents skipped out on paying their mandatory membership fees, a result of the subprime mortgage crisis and looming foreclosures."
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The stories on unpaid HOA and condo fees are piling up. The collections and foreclosure lawyers are busy. How long before we start reading about bankrupt HOAs? Thanks to Fred Pilot for the link
5 comments:
I never like the idea of an HOA. What I see here, will keep me out of Tx.. Was A place I had consider to move, thats out especially Harris county.
It is getting harder to avoid HOA properties in some places because so much of the new construction is set up that way. Good luck.
As more and more potential home buyers realize what a problem HOAs are, the values of non-HOA properties will increase while the values of HOA encumbered housing will stagnate or decrease. So much for the idea of HOAs preserving property values!
As HOAs try to make up for those who skipped out on HOA dues and increase dues and special assessments for those who are left, more of them will skip out also, accelerating the vicious cycle toward financial ruin. As was said in earlier posts, HOAs are financial black holes. There will no doubt be entire developments turned into ghettos as a result of this phenomenon, and a whole generation of owners and buyers turned off to the whole HOA concept.
When do we reach the tipping point?
Sometimes reasonable judgement isn't used in times like these. A drought in the back yard is the same in the front. There is a shortage of water. The grass will grow, there are seeds in the ground. Some strain at a gnat and swaller a camel.
When we have so many useless regulation common judgement maybe lacken.
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