While there is a long list of negative affects coming out of home repossessions as well as a decent sized list of the opportunity those home repossessions offer to home investors, first time buyers as well as people just looking to move up into a nicer home. However this article explains a new epidemic of yet again the ruthlessness of HOA’s across America and how it affects you.
Condominiums and houses alike have HOA’s
Keep in mind that this might not have as strong as an effect as it does for those of us that own condominiums with sometimes layers of HOA’s within. if that is the case there is a good chance you will have some type of corruption within one of the layers. Don’t get me wrong, HOA’s are important in keeping a solid place with well needed rules especially in this moment in time in the United States where the rules will constantly be challenged one way or another. The problem is that once an HOA is established, it never fails that a corrupt or power hungry individual will somehow get in and once in will do everything in their power to stay in, including but not limited to rigging future elections, making sure never to have a quorum, among many other abusive things they can do and HOA’s might show as if they are regulated but the reality shows different and they are frankly untouchable unless of coarse they start to scrape some funds in which eventually they will get caught.
Some of these HOA managers are so abusive and they know very few will or be able to sue. They have mediation clauses which even if you win a mediation, you then go to circuit court which can take years, lots of cash and if for some reasons you lose, not only do you lose the 25-50k you coughed up, but you are liable for there legal costs as well which will range in the 100k plus range to protect these abusive HOA dictators. An attorney writes the following and every single word is true.
Associations also are private organizations, and most constitutional protections don’t apply. The Pennsylvania Supreme Court has held that condo associations may restrict free speech in the posting of fliers, since First Amendment rights don’t apply to non-government restrictions, and that resident owners of a condominium may enact policies favoring one group of owners over another. This all makes for a losing battle when fighting an association. -David Evenhuis, Esq
The epidemic that has spread from one corrupt HOA to the others across America
The HOA’s know that sooner or later there fees will get paid by the lenders, if they do not the HOA’s can foreclose and take these homes themselves, but rarely does this happen. In essence since the HOA knows for sure they will be paid, they begin to tack on all the fees they legally can in order to suck as much money from the banks as possible.
Pre housing repossession epidemic
Original HOA monthly fee $300.00
Original HOA monthly late fee $8.00
Second layer HOA usually less expensive
Original HOA monthly fee $100.00
Original HOA late fee $5.00
Keep in mind, I know not everyone pays late and they should not pay late, however in such a bad economy sometimes people pay a few days late while just making ends meet and they expect to pay an $8.00 late fee and are OK with that as it is reasonable. In any event, looking at a condominiums late charges it seems that somewhere around 10% – 15% pay late each month, however when homes are in between foreclosure and repossession periods those fee’s do not get paid. So the HOA has to try and force the lender to actually take repossession by filing a lawsuit to repossess themselves. In doing so the lender will pay all delinquent fees. So the corrupt HOA’s will excessively add on every legal cent they can in order to rape the lender as much as they can in an animalistic way without a care in the world for actual homeowners.
Post home repossessions
HOA late fee $25.00 for all layers
Interest late fee 30% for all layers
Suddenly a homeowner that is sometimes late gets a bill of 5 times the usual late fees plus the added maximum state allowed interest they can charge so they can get there piece of the home repossession pie. The actual homeowners pay the price.
Consumers must be aware of the ill practices of trusted HOA’s across America and beware of purchasing in those friendly HOA communities, more so at a time of higher home repossessions.