About 60 million Americans live in buildings controlled by home owners associations (HOAs), according to the Community Association Institute. Now, as the real estate crunch moves into a new phase with more strapped owners who can’t make their mortgage or maintenance payments, HOAs are being forced to foreclose to protect their interests.
The problem is worse in older condominium associations, especially those that have been poorly run. Suddenly facing large maintenance bills some HOAs have to send out hefty assessment notices, but unfortunately many owners are not in a position to pay. While a foreclosure action is not pleasant or inexpensive, sometimes it is the only resort for HOAs, who typically stand at the back of the credit line behind banks and other creditors.
Want to Ride The Foreclosure Bus?
In another interesting and sad wrinkle to the real estate bust, more and more U.S. cities now have a new kind of tourism in their communities - the foreclosure tour. Although it is questionable how many sales have resulted from the tours, they are apparently very popular. We have heard of foreclosure bus tours in Boston, Long Island, Cleveland, Minnesota, and Missouri. Thanks to seekingalpha.com for this research.