When a homeowner association forecloses and takes title to a home, the idea is the board will be able to rent it out until the bank forecloses as the primary lien holder. With banks taking years to foreclose on some properties, the board can potentially collect thousands of dollars
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Apparently there's a silver lining in the real estate crash for HOAs. While they hold junior title under mortgagees, in the meantime HOAs can milk properties they seize in foreclosure for rental income until the mortgage lender takes back the property.
2 comments:
What if the HOA's rules limit the number of, or even prohibit, renters?
I expect the HOAs will grant rule variances and waivers citing difficult and extraordinary economic circumstances.
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