ASSOCIATIONS PUSH FOR FORECLOSURE INSTEAD OF PRIORITY OF THEIR LIEN

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EDITOR’S NOTE: I wonder why the homeowner associations have not aspired to have their lien declared as having priority over the defective mortgages — a move that would guarantee collect-ability and which would save the homeowner from foreclosure.

Of course that would mean fewer foreclosure sales, fewer short-sales, and fewer re-sales. Realtors probably would not like that.

homeowners-associations-increase-lawsuits-to-force-foreclosures

With homeowners’ associations in a financial pinch, the amount of lawsuits filed to force foreclosures is on the rise, according to an article on Bloomberg’s website.

Homeowners’ associations have begun taking banks to court after finding that foreclosure delays have enabled homeowners to stay in their residences for months, even years, without paying association fees. The lack of incoming fees cause associations to lose tens of thousands of dollars in revenue, according to Bloomberg.

“About 50 percent of our members said the housing crisis and economic downturn have had a severe or serious impact on their association,” said Frank Rathbun, spokesman for the Community Associations Institute, a trade group with about 30,000 members.

The fees associations charge go toward community upkeep in places such as parking lots, roofs, landscaping and trash removal.

About one in five Americans live in a house with homeowner or condo fees, Rathbun told Bloomberg. Many people residing in buildings with homeowner or condo associations also live in states with high foreclosure rates, such as Florida, Nevada, California and Arizona.

According to Steven Parker, president of Red Rock Financial Services, delinquent homeowners in Nevada, which has the highest foreclosure ratings of any state, owe associations about $150 million in back fees.

John Rickel, chief executive officer of Association Dues Assurance Corp., told Bloomberg that banks often attempt to delay foreclosures because of the associated dues, property taxes and occupancy costs.

In Florida, for example, 14 percent of homes have a foreclosure notice, and the average delinquent homeowner has not made a payment in 719 days.

Homeowners’ associations desperate for cash will often have to push banks to foreclose on delinquent homeowners.

“Banks have been slow catching up to reality,” said Kelly Richardson, an attorney who specializes in homeowner association law, in the Bloomberg article. “When pushed, they’ll step up to the plate, but you have to push them.”

Tags: association liens, bankruptcy, borrower, countrywide, disclosure, foreclosure, foreclosure defense, foreclosure offense, foreclosures, fraud, LOAN MODIFICATION, modification, quiet title, rescission, RESPA, securitization, TILA audit, trustee, WEISBAND
Posted in bubble, Corruption, Eviction, securities fraud |