A condominium complex or patio home neighborhood can offer many advantages, but one component of living in this type of area is that everyone is subject to the rules of the homeowners' association (HOA). One in five homeowners is now involved with an HOA, with more association communities opening every month. The association has financial responsibility for many issues which could include insurance, maintenance and repairs. To cover these costs, each homeowner pays monthly dues, usually between $400 and $500. Sometimes there is also a special assessment for major repairs. When some members of the association don't pay these fees, everyone else may wind up paying more.
What many homeowners are surprised to find out is that their association agreement may allow the HOA to foreclose on their property to cover these unpaid fees, even though the homeowner may owe nothing to the bank. Foreclosure is sometimes used to recover relatively small amounts of money, especially if several homeowners fail to make payment, which causes a great deal of financial stress on the remaining members. According to a September survey by the Community Association Institute, about 65 percent of HOAs have reported delinquency rates higher than 5 percent.
If your HOA is threatening foreclosure, this may be the time to sell your Denver property. A foreclosure on your credit history may prevent you from making another home purchase for at least three years. Avoiding foreclosure could reduce your financial burden, and decrease stress on you and your family. If you're thinking of buying an HOA property, be sure to read the association agreement closely and understand the financial picture of the HOA before you buy. You may also want to consider the financial benefits of buying a Denver home at short sale or foreclosure pricing.
As a Certified Distressed Property Expert (CDPE), I have specialized training and resources to help both buyers and sellers work through their options when it comes to distressed properties. If you're thinking about buying or selling a distressed property in Denver, the real estate experts on the Bandy Team are here to help. We can answer your concerns and show you some terrific real estate in Parker, beautiful houses in Castle Rock, including the two communities of properties in Castle Pines; and other homes in the Denver Metro Area, including a wide variety of houses in Highlands Ranch and homes in Centennial.
Consider Denver Relocation.