Foreclosure Expert: The Worst is Yet to Come - Foreclosure filings reach nearly 3 million in 2009, record high | foreclosure, shutters, million - Local News - The Star Online : The Newspaper of Cleveland County: "Some of those mortgages are simply walking away from homes because the outstanding principal on the mortgage is higher than the home’s value. Adding to the problem are mortgage companies, which also walk away from homes because of back taxes, lawyers’ fees and homeowners’ association fees.
“The problem is working its way up in income levels,” said Gardner.
Overall, he expects the number of foreclosures to increase at least until 2012 as they extend into wealthier neighborhoods, targetting professionals such as doctors, accountants and lawyers, he said.
And because of that Gardner has a simple message for consumers: The worst is yet to come."
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I think he's right. Thanks to Fred Pilot for this depressing but true perspective.
5 comments:
From 2000 to 2008, between the private sector and the public sector we racked up something like $12 trillion in debt. There's really no way out of this other than a Depression that in the long run is worse than the 1930s. The saving grace of the 1930s is that we had a current account surplus and growing export industries, in other words a means of financing our way out of the crisis. We don't have that any more. And the foreclosure crisis is, other than mass unemployment, the most obvious symptom of this result of binge borrowing and stupid public policy.
I believe this article says alot about WHO is going to be paying! In an HOA/COA/CID all the other owners will be assessed and what happens when they can't/won't pay for their "neighbor?"
Look at this post from a truthful Charlotte, NC Blog:
http://www.city-data.com/forum/charlotte/485318-another-hoa-horror-story-2.html
Quote from blog:
"I was adamant that even if we used their attorney, we would NOT foreclose on people's homes, he would simply file the lien and collect the funds. I stated my stance on that repeatedly throughout the year and the board agreed.
I have now found out that the management company has filed foreclosure proceedings against 9 homes in our community! This added to the three other (bank) foreclosures (that I know about) results in 12 foreclosures out of 110 homes. Guess where our values are going to be????"
Entire post:
Originally Posted by chicagocubs
"As many of you know from reading my posts, I am vehemently against even the concept of a homeowners association for a single family dwelling. When I purchased my home, I was then told that an HOA existed and here were the rules. (plop!) As time went on, I became involved in the HOA and eventually became the president in order to keep things under control (or so I thought). As a former property manager for 10 years plus currently employed in the real estate industry, I knew that I had the knowlege to keep things going properly and within the scope of the area. Now, it bears noting that this property is not in Ballentyne nor Lake Norman, it is a struggling blue-collar neighbourhood with its share of gang issues and other problems. In other words, definately NOT upscale.
Well, we (like many other communities) have had our issues in collecting our relatively low HOA dues. ($100/yr). In the past, we have simply filed liens against the property and this has usually netted our funds when the property was sold or refinanced. This year, the management company pursuaded the board to use their staff attorney. I was adamant that even if we used their attorney, we would NOT foreclose on people's homes, he would simply file the lien and collect the funds. I stated my stance on that repeatedly throughout the year and the board agreed.
I have now found out that the management company has filed foreclosure proceedings against 9 homes in our community! This added to the three other (bank) foreclosures (that I know about) results in 12 foreclosures out of 110 homes. Guess where our values are going to be????
The management company has stated that they have the permission of the board to do this. I knew nothing about it. I have demanded to see this letter of authorization because, without it, I will sue for the lost equity in my home that is due to the complete incompetence of this company.
I am so angry I could spit. Obviously, I have resigned as President and have written an open letter to the homeowners explaining what has been done. I wish I could move, but, especially now, I probably couldn't get enough money to pay off my mortgage, let alone anything else!
WARNING TO ALL: STAY FAR AWAY FROM HOMEOWNERS ASSOCIATIONS. YOU WILL BE GLAD THAT YOU DID!!"
www.city-data.com/forum/charlotte/485318-another-hoa-horror-story-11.html
Someone recently mentioned this older thread on Privatopia. What you folks need to understand is that neither the HOA corporation nor the homeowners profit from this. The people behind the foreclosure are the VENDORS of the HOA.
The vendors (management company and attorney) threaten the homeowners with foreclosure to extort money from the homeowners. Undoubtedly the management company reps will either lie or they will otherwise con gullible board members into justifying the management company's activities and propose "direct charge" or "back charging" the homeowner so that no one but the homeowner is any-the-wiser as to what the management company and HOA attorney are trying to extract from the homeowner.
The management company is there to take as much money from the HOA corporation and the homeowners as it can, period. These management companies won't hesitate to threaten foreclosure nor will they hesitate to jeopardize a home sale in order to extort money from homeowners. They claim to be working for the board, but all too often the board is wholly unaware of the conduct of the management company and aligned HOA attorney.
You will also need to see if they have implemented the "priority of payment" scam where they re-characterize your assessment payments to management company and HOA attorney fees. Once this is in place, the management company and HOA attorney will create "debt" out of thin air in order to extract large "collection fees" over a small alleged debt. It is not uncommon for the management company and HOA attorney to collude to "generate" many thousands of dollars in collection fees, attorney fees, handling fees, etc. over alleged debts ranging from cents to a few hundred dollars. The HOA will be the last, if ever, to be paid once these parasites have attached themselves to the wallets of the homeowners and the HOA corporation bank accounts.
You also need to see what kind of "banking resolutions" the HOA management company has established. You might be surprise at what kind of authority they have given themselves via such resolutions. The "authority" to receive money from homeowners without depositing it in the HOA bank account and without crediting to the homeowners account is just one such power that these management companies will create for themselves over the HOA's bank accounts.
Of course most of the time the management company and HOA attorney work to try to keep the records of the HOA secret from the homeowners. It helps conceal the vendors' activities.
To whomever posted:
Anonymous said...
www.city-data.com/forum/charlotte/485318-another-hoa-horror-story-11.html
Someone recently mentioned this older thread on Privatopia. What you folks need to understand is that neither the HOA corporation nor the homeowners profit from this. The people behind the foreclosure are the VENDORS of the HOA.
Thank you for your explanation. Every ownerin an HOA, COA, CID in America should read what you have had to say. In addition to your explanation, I have seen a where an individuial board member(s) have conspired with the association attorney to fraudulently fine, assess and foreclose upon simply innocent families, who owed absolutely nothing. These acts are terrible and I believe are intentional, to destroy lives, careers, finances and families.
Those who have planned, conspired and carried out the terrible crimes need to be prosecuted, no matter who they are, or who they know. I have heard one state is doing just that!
Originally Posted by chicagocubs, in the blog above said;
"I have now found out that the management company has filed foreclosure proceedings against 9 homes in our community! This added to the three other (bank) foreclosures (that I know about) results in 12 foreclosures out of 110 homes. Guess where our values are going to be????"
"Guess where our values are going to be????"
This person is not at all concerned with those being foreclosed upon, being made homeless, due to the outright illegal activities of their "vendors." It appears there is no empathy, concern for a neighbor. Tell me one more time about the sense of community these groups are supposed to foster, so says some we know. All I have seen fostered in these groups is conflict, harassment, hate, jealousy, pecking orders of self proclaimed "better than everyone else board members, and their friends, etc..."
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