Homeowners should make a point to understand what their Home Owners Association (HOA) is doing, especially in arena of dealing with salvaging fees from homeowners in foreclosure.
ZERO Recovery Forever Instead Of Thousands Now
Some Homeowner Associations prefer to get ZERO dollars if the house goes to foreclosure rather than thousands of dollars NOW in a short sale.
As a short sale Realtor, I have gotten foreclosing lenders to pay thousands of dollars to cover settlements on large delinquent HOA balances. However, some HOA's have all-or-nothing "no-settlement" policies. The HOA wants every cent including legal fees or let the house go to foreclosure where they get ZERO.
In addition, a successful short sale gets a new paying resident in the house NOW. A foreclosure can cause a house to sit vacant for a year or longer.
Push Your Neighbors Over The Cliff Then Slip And Fall Over With Them
By refusing to accept multi-thousand dollar settlements, HOA's are putting the final nail in the foreclosure coffin of houses in their subdivision.
These HOA "no-settlement" policies cause;
As a short sale Realtor, I can only help those who are willing to be helped. I have helped HOA's and their constituent residents recover thousands. I cannot help HOA's that refuse to be helped and who turn down thousands of dollars.
Do you think the other residents in the subdivision know that their HOA Board or management company is turning down thousands of dollars in their name?