Tuesday, June 23, 2009
Associations Can Force Residents Into Foreclosure
NASHVILLE, Tenn. - Homeowners associations' reserve the right by law to forcible foreclose on property if residents fall behind on their dues. Associations in Texas, Florida and California are beginning to exercise the foreclosures. Not one case of a homeowners' association forced foreclosure is on-record in Nashville. No homeowner NewsChannel5 spoke with was aware of the loophole. "First of all, that's news to me," said Bellevue homeowner Rob Crosby. "It's very unfair - if it's true that homeowners' associations can foreclose on someone being late, or getting behind on monthly, regime fees. That's crazy." Forcible foreclosure is a last resort, and Nashville attorney Lee Corbett called the act an extreme solution. "It's extremely unusual," said Corbett. "No matter how far behind they are, the amount is relatively small compared to the value of the property the homeowner owns." Corbett said there are other ways an association can recover its dues by filing a lawsuit. Three things are necessary for a property management company to force foreclosure: a written policy, approval from the association's board of directors and the pursuit must be fiscally worthy of the association's efforts. The sale of the property, in other words, should allow the property management to recoup its past-due fees plus the money spent on such a large endeavor. 59 million Americans are said to be living in neighborhoods governed by some type of association.
Posted by Blogger at 8:06 AM