Foreclosures and your HOA

I have been thinking of writing about how foreclosures in a community hurt the HOA, and yesterday the paper had an article on the same subject.  Couldn’t find it today on their site. 

When a community has foreclosures, the home owner has stopped paying their mortgage, and their HOA. Some times the HOA has not been paid for months before the homeowner is late on their mortgage.  Think about it, if you were running short on money, would you pay your electric bill or your HOA bill?  You get my picture. 

So many times the homeowner has not paid their HOA fees in months, and months, when the property does get foreclosed on, one of the last to be reimbursed thru the sale of the property is the HOA.  Making many HOA’s hit hard by the reduction of income.  The community I live in has had to raise the HOA fees, to cover all of their costs.  Some HOA’s have cut back on what services they are offering.

The Arizona Republic article talked about how some of the HOA’s are negotiating with the landscapers, pest control services, pool companies etc.  The Leadership Center at Chandler-Gilbert Community College is bringing in legal and financial experts for a special public session “Preserving Your Neighborhood in a Challenging Economy“. 

One more thing to consider when purchasing a home.