20-Unit Condo The Target Of Suspected Straw Buyer Mortgage Scam Leaves One Unit Owner Facing Loss Of Home Despite Having Made All His House Payments

In Escondido, California, the North County Times reports:

• [A] North County Times investigation that began in July has traced the demise of Brookhaven, a community emblematic of the nation's housing bust: Born of a 2005 project to convert apartments to condos, the complex has since been plagued by subprime loans, foreclosures, failed loan modifications, inflated values, strange rent agreements on vacant homes and three real estate professionals charged with mortgage fraud in unrelated cases. An astounding 15 out of 20 of the units are in some stage of foreclosure. Two others sit vacant. There is only one owner who lives in the complex, Cruz Alberto Rangel.

• He bought a home in the complex in 2006. He has made all his mortgage payments and homeowners association fees. Now, he faces eviction because all the foreclosures and vacancies have forced the homeowners association out of business. It can't pay the water bill, and the city of Escondido threatened to shut off the line and evict all residents.

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• The association also can't pay its taxes and is not allowed to operate as a business, according to state officials. Brookhaven has one water bill, which is supposed to be paid by the association, so it doesn't matter that Rangel has paid his portion and his mortgage. He said he has never missed any payment. "This is our place," said Elvia Rangel, Cruz's wife. "This is our house. We're paying for it, and it's not fair that we're going to lose it."

For more, see Foreclosures overwhelm condo complex (Broke homeowners association late on water bill, residents face eviction).