Again, like a broken record, as predicted here, homeowners associations across the land are running into big issues now that the housing gamblers and failed flippers can't pay their monthly nugget - or can't even be found.
Choice A: Cut services
Choice B: Get the demoralized residents to keep up the joint
Choice C: Raise everyone else's HOA fee
Choice D: Go bankrupt
Choice E: All of the above
I'd love to hear what's going on in Failed Flipper monuments like the Third Avenue Lofts in Scottsdale, or the Club at Brickell in Miami for starters. Not quite the HOA-paid-for wine and cheese parties everyone expected, eh?
Foreclosures force HOAs to cut corners on upkeep
Homeowners associations strapped by unpaid assessments related to the foreclosure-ridden real-estate market are mustering volunteer work crews, cutting maintenance jobs and scrimping on landscaping to save money.
Phoenix, Chandler and Avondale are among Valley cities fielding calls for help from HOAs that previously turned only to their own boards of directors and management companies.
Rising Foreclosure Rates Cause HOAs To Fall Into Bankruptcy
ORANGE COUNTY, Fla. -- The Avalon Lakes Homeowners Association was on the brink of bankruptcy. At one time, it had a $140,000 deficit. The subdivision said people who fell into foreclosure stopped paying their HOA FEES.
“The people that weren’t paying, still aren’t paying and we’re basically paying for them,” said Cynthia Weclew, a homeowner.
There are concerns about what will happen to the communal areas of the subdivisions if the HOAs can’t afford the upkeep.