Associations of Property Managers
Whether we’ve personally experienced the impacts or not, we’ve all heard about how bad the economy has been. Individuals and families that are unable to keep up with their mortgage payments are at risk of losing their houses to foreclosure. This has evident financial consequences for the homeowners or condo owners, but it also has the potential to cost others who live in the same area or development.You may want to check out Miami Property Management for more.
There are no fees because there are no owners.
When a home goes into foreclosure, it has a number of consequences on the surrounding homes and condos. Vacant units may show signs of wear and tear, such as chipped paint and overgrown yards. Fewer people and families in a community implies less money to maintain common areas, which lowers the value of other people’s homes. The foreclosed home may also indicate to potential house buyers that the neighbourhood is not safe or financially sound. When a prospective homeowner observes others seeking to live in a particular area of town and failing to do so, they may begin to question whether the region is financially feasible for them as well.
Because the association relies on monthly or yearly dues to keep up community maintenance, a home or condo owners association faces trouble addressing the potential of foreclosure as well. If a homeowner can’t pay their mortgage, it’s likely that they can’t pay their HOA or COA dues, either. And if they are evicted from their house, the chances of the dues being paid are considerably slimmer. When there isn’t enough money to maintain common places like parks, streets, and security measures, the entire neighbourhood suffers. Condo associations are responsible for the upkeep of common areas and building elements such as elevators, roofs, and parking spaces, therefore the costs may be prohibitive.
The Consequences for Homeowners
Most people facing foreclosure will let their HOA or COA fees fall behind on their mortgage payment. Because the organisation is a legal body, it can pursue fees and hold homeowners liable for them, sometimes through the placement of a lien on their property or the filing of a lawsuit. If a condominium owner has not paid their dues for 90 days, the association has the power to restrict or prohibit that person from utilising “common components, common amenities, or any other association property,” according to Florida code 718.303(3). This means that anyone who is 90 days behind on their association dues may be denied access to the neighborhood’s common features, such as pools, fitness facilities and equipment, or playgrounds.
The owner of a foreclosed home or condo is still responsible for such expenses even after they have moved out. If their property becomes dilapidated, they are also responsible for paying any fines incurred as a result of code enforcement infractions. These fines are not only inconvenient, but they are also legally obligatory. If the case justifies it, a person can be charged with interest or served with a lawsuit.
The Consequences for Neighboring Property Owners
When it comes to foreclosed properties, home and condo owners associations suffer the most. They may have to start tapping reserve cash or boost fees for homeowners in good standing to make up for the expenses. This is an unjust and unsatisfactory solution to the HOA and COA budget concerns, but it may be required if the neighbourhood wants to keep its common areas well-maintained and property values higher than they would otherwise be.
Owner dues are the lifeblood of a home or condo owner’s association, therefore if homeowners fall behind on their dues, the organisation will likely be unable to cover the expense of maintaining common spaces. For nonpayment of dues, an association may be able to foreclose on a property. Because the association was founded before the mortgage and was “first in time,” they can foreclose even though they are not the mortgage holder on the property. The association files documentation for each property that give it the ability to collect dues and an interest in the property, which can include the power to foreclose if the renter is late on their payments.