HOA’s struggle in face of foreclosures

Published: May 26, 2008, 11:39 pm

Home Owners Associations are feeling the effects of the housing bust as foreclosures and delinquent association payments put the squeeze on budgets. Homeowners feeling the squeeze of increased mortgage payments have stopped paying their association dues. In addition banks that are holding REO property in neighborhoods with association dues are notorious for lack of payment, causing the associations charged with keeping up public areas of housing developments to cut back on services. HOA’s are a familiar sight in newer developments and are responsible for everything from maintaining the common area lawns, to the pools, parks and other amenities of master-planned living. Now, with revenues dwindling the HOA’s are faced with the unpleasant reality of having to raise the dues of the paying homeowners while cutting back services just to stay solvent. The USA today covers the plight of a typical HOA in Arizona: AVONDALE, Ariz. A modest housing tract, set amid

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