The Foreclosure Squeeze Continues For Condominium / Homeowner Associations

The continued squeezing of the operating funds of condominium & homeowner associations as a result of financially strapped unit owners (many of whom may be facing foreclosure) failing to pay their required maintenance fees continues, as evidenced by these stories:

• Cape Coral community fights rising fees linked to neighbor's foreclosures: Homeowners who say they were recently hit with a $600 special assessment on their association dues are now hit with a $650 assessment - due by Dec 31st.

• HOAs cry foul over foreclosures (Break banks get on back dues hurts associations, they say by the numbers): Local homeowners' associations and condo boards say banks are unfairly getting a break on how much back dues they have to pay when they take back a home in foreclosure. That's resulted in financial pain for some associations and helped drive others to the brink of collapse. "We are $33,000 in arrears as of this month," the president of one association said. As a result, the mostly elderly owners were recently hit with a $350 special assessment. Reportedly, in one community, only about 30 of the development's 112 units have owners who are still paying their condo fees.

• Homeowners group pays price of foreclosures (Greenbrook residents left to pay for upkeep of abandoned homes): Not only are residents paying to keep some abandoned homes looking trim, but the same residents also face unpaid dues from the former neighbors who walked away.

• The Condo Crunch (Sales Are Slow, Prices Are Falling, Dues Are Overdue. How Are Associations Coping?): Complaints about condominium living used to involve mainly squabbles about noise levels and pet policies and simmering resentment over a new paint color for the lobby. But the economic downturn is forcing condo owners to turn their attention to money matters that make one resident's budget crunch everyone's problem.