Saturday, July 21, 2012

Now It's the Big Banks That Are Getting Foreclosed On - CNBC

Now It's the Big Banks That Are Getting Foreclosed On - CNBC

"These associations have been hit hard by the housing crisis, as many delinquent borrowers stopped paying their monthly HOA dues. In some cases, HOA’s, which do have the authority in many states, managed to foreclose on properties even before the banks, by using the back dues as liens. Now the homeowner associations are taking it one step further. They are going after the banks, claiming that several of the largest lenders are not paying monthly HOA/condo fees on homes they’ve repossessed and now hold as bank-owned properties (Real Estate Owned, or commonly called REO’s)."
Apparently the reporter just learned that HOAs are foreclosing on banks that don't pay their assessments. This isn't new, but the article has some good detail.  Thanks to Shu Bartholomew for the link.


Anonymous said...

Don't these banks realize that HOAs increase property values?

Mike Reardon said...

Who will get the last laugh here?
The banks will charge a premium to lend in HOA land...making our property more difficult to sell.

The insult to our property values continues.

While the stupidity of these places expands exponentially.