This year's second quarter marks the first time since 2009 that foreclosures are back on this rise. It is speculated that this is due to the majority of lenders now tapping back into the default loans they put a halt to during the robo-signing era of 2010.
Just over 300,000 new case of foreclosures have sprouted up this year and a large amount of them are from entities you wouldn't expect: large banks. Deutsch Bank, J.P. Morgan and Citibank are a few examples of banks who have failed to pay HOA maintenance fees on properties they reclaimed from delinquent homeowners and now, these banks are finding themselves in court foreclosure cases.
We all know the devastating effects of foreclosures such as the value decreases it causes on comparables in relative areas but what about how it affects those living in HOA controlled developments? In this situation, delinquency of monthly dues can cause the maintenance bill for all other paying homeowners to rise while at the same time reducing the amount of amenities available to them.
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