As the real estate environment continues to deteriorate, there is an alarming trend of HOA's making financially irresponsible maneuvers. I have recently encountered several instances of HOA's rejecting lease terms - including monthly rent or duration. I have seen them reject lease extensions. These actions cause owners to become delinquent to the HOA assessments.
Even when a home is in foreclosure, they are suing to enforce a lien that is subordinate to the lender and there is not enough money to pay the lender. Why bother?? They are rejecting offers to bring a property current over a reasonable period of time and are not negotiating reasonable resolutions. All of this places a burden on complaint owners who now face a special assessment.
Government's response has been to provide HOA more power and special rights such as in Florida where the HOA can stand in front of a superior lien holder and get paid BEFORE a lender for example. Assigned rents go to the HOA instead of the lender!! This is making the situation WORSE! Many HOAs are run by idealistic individuals with too much time on their hands.
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