We have a community in the High Desert within the San Bernardino Mountains, referred to as Spring Valley Lake. This community has around 4200 lots and was developed by a company known as Boise Cascade. There were lots divided around a lake and golf course and they started selling these lots back in 1969. Well, these lots are pretty much filled up with houses. Where can you go in the desert and find a man made lake , and golf course so close to LA.
Though the people residing at this Country Club community are of different communities and different cultures they are experiencing the same situation as many of us see. The foreclosure market is hitting them the same way. One out of 41 homes have been in a foreclosure situation within the past seven months. With the crisis in the sub-prime market, it is making lenders cautious about making deals in the future. Heavy debt is now preventing lenders from making loans.
The Board of directors of the HOA has put the responsibility of cleaning the neighborhood either on the banks or on the real estate agents. And therefore, they are paying for the staff's wages to the HOA. The amount budgeted for this by HOA is around $15,100. This also includes fees paid to court for allowing them to enter the premises of the homes.$40100 is budgeted for any losses incurred due to unpaid wages. These efforts have been taken up by the HOA to demonstrate to the residing people their concerns about the impact on property values.
It appears and opinions are that this market may continue for a few more years.