Another Sign of Foreclosure Trouble in California - Developments - WSJ: "Here’s another sign that California’s foreclosures could jump in 2009: Delinquencies on dues owed to homeowner associations have risen sharply.
The homeowner association delinquency rate can serve as a leading indicator of sorts because homeowners usually stop paying dues before they stop paying their mortgage. The 90-day delinquency rate on dues for the 260 homeowner associations in California managed by Merit Property Management jumped to 5.3% in March from 2.8% last June. Delinquencies first spiked to 2.6% in December 2007 from 0.8% in March 2007."
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Shu Bartholomew sent this along. I think the basic observation is sound. People can say what they want about the stock market and the banks. To me, the recession is mainly about housing and unemployment, and those are the two sets of indicators I pay attention to. Neither looks good at the moment.
3 comments:
Think how much money those management companies expect to earn as a result of the downturn! More collection fees, more late fees, etc! They're just rubbing their hands in delight.
That's right. Instead of a bankruptcy trustee, in the case of insolvent HOAs the courts appoint a management trustee who assumes all control over the operation of the HOA at a handsome multiple over their regular rates.
This article talks of delinquencies. In the past, innocent homeowners have been made homeless WHO OWED NOTHING; NOR, DID ANYTHING to deserve the attack. Some are vulnerable populations who were targeted for MONEY! Slapp, fabricated lawsuits to steal homes! These are the people who deserve to be heard and rectified.
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