A recent news story tells of National Guard commander who served in Iraq last year received an urgent call from his wife while there telling him that their Homeowner Association had foreclosed on their paid for $300.000 home because she had missed two payments. Yes, only two payments.
And, someone taking advantage of this bought the home for the amount of the delinquency and the associations legal costs, $3,500!
33 states have ruled that Homeowner Associations do not have to go before a judge to collect on liens placed on properties. Many of these states can even foreclose on those properties in what is called a non judicial foreclosure. Associations have become more aggressive about collecting on the delinquent fees as the economy has worsened.
If you are thinking of purchasing a home in a community represented by a Homeowner Association make sure that you keep those payments up-to-date.
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