foreclosure filings leveling off, inventory dropping

[AAbsolute]

I don't think the HOA is considering foreclosing. I just think they are putting their claim out there to make sure it is satisified when/if the home is sold. Not sure how it will work in a foreclosure situation.

Also, the passed due fees at a clip of $1000 per quarter more than likely totals moe than $250k, not $80k. With 60 +/- homeowners not paying dues, the HOA is losing $60k per quarter in fees. Anyone from any of these HOA's have an idea of the amount of passed due HOA fees?

The Official Records show that the Watercolor HOA is foreclosing upon their liens for HOA dues. I live in Watercolor and own properties in Watersound and know that there are a lot of common community expense so I understand their "lifeblood of the community" position.

When I research the foreclosure of a second position lien it looks like the Plaintiff is looking to take possession by buying the property from the first lien holder. It sounds like the Defendant gets their 1st mortgage satisfied.

This can't be correct.

 

[30ashopper]

Go get'em with claws bared.

Liens indicate more trouble to come in paradise--rough number of liens filed by HOA over the last 12 months or so-

watercolor-60
watersound-30
rosemary-30
the preserve-15
cypress dunes-15
seacrest-30

hoa's may or may not be able to collect. the bigger issue here is the potential for many, many more foreclosures to come.

Liens don't automatically turn into foreclosure, taking the action further is up to the Board. I'd bet they are just getting the liens in there in an effort to collect as much as they can at some point.

From around 2/08 - today, watercolor has filed about 13 LisPen filings, most in the last 3 months. From 6/2007 to 1/2008 they filed none. So I think they are in new teritory here. A number of developers appear to be involved in the LisPens. I looked at one where the owner built via St. Joe. Watercolor filed a lien last year and a year later filed LisPen. The property will go up for auction. How watercolor and the bank work out who takes ownership I'm not sure, but since the property will probably auction for less than owed, the bank will no doubt have the right to refuse any offers. In which case I'd guess they will have to take ownership and sell it.

 

[30ashopper]

According to Margo's guide, the bank's loan is superior -

The most important part of the foreclosure lawsuit is extinguishing as many
competing interests in the unit as the law allows. Some competing interests
may be superior and others may be subordinate to the Association’s lien.
Competing interests in the unit may include, for example, mortgages, federal
tax liens, construction liens, judgment liens, and leases. The fewer encumbrances
(competing interests) on a unit at the time it is sold, the easier it is to sell, and the
more it is worth to the person buying it at the foreclosure auction. The process
of extinguishing competing interests in the unit is accomplished by naming the
holders of these competing interests as defendants in the foreclosure lawsuit and
proving the Association’s claim of lien is superior to these interests.

So the bank get's paid first even though they never foreclosed. I'd bet at that point it's just like any other foreclosure, the bank gets the property and puts it on the market. The association gets paid some miniscule component of what is owed to it. I think in cases like this, it's worth WC forcing the hand of the banks that are holding off on foreclosure. They get screwed either way, it's just that by forcing the hand, they push the process through faster and loose less.

 

[YoungFT]

I'm no legal expert but 30a Shopper's view sounds reasonable. By forcing the property into foreclosure, although they may not collect back dues, they have a better chance of collecting future dues sooner.

 

[AAbsolute]

I'm no legal expert but 30a Shopper's view sounds reasonable. By forcing the property into foreclosure, although they may not collect back dues, they have a better chance of collecting future dues sooner.

So what we're talking about then is an HOA files a lien. Then the HOA files the lis pens to commence the foreclosure action. The property makes its way through the legal process. If the Owner doesn't satisfy the action prior to the auction the property is sold. If there is sufficient money to payoff the first position the mortgage is satisfied. If there is excess funds they go to the lienholders of lesser priority (HOA, etc.) If there are no excess funds then lienholders of lesser priority make motion to gain a deficiency judgement against the Owner in favor of the HOA. The HOA pursues satisfaction of the judgement.

This sounds very cost prohibitive to our HOA ( us owners ) as a business decision. Is the true strategy to move the property into a parties hands who will pay dues timely? I guess this strategy could be fruitful to the HOA if taken in a portfolio view of the odds that Owners will become current when forced to.

Can anyone inform us what the fees that a Shipman or peer gain from the Action? The ultimate cost seems to be the last piece of the equation.

Thanks

 

[Gypsea]

I can tell you the Town Center (condo) dues are much more than $1,000 a quarter. We have different circumstances.

You need bigger claws then!!! Bring em on!

 

[Miss Kitty]

You need bigger claws then!!! Bring em on!

...I have reconsidered and think I may need your looks and charm for this to be successful!

 

[fisher]

I can tell you the Town Center (condo) dues are much more than $1,000 a quarter. We have different circumstances.

Yes, I believe condos HOA dues in major developments are higher than the general HOA dues because of the need to cover property taxes, insurance, etc on the condos in addition to paying the general HOA dues.

 

[Miss Kitty]

Yes, I believe condos HOA dues in major developments are higher than the general HOA dues because of the need to cover property taxes, insurance, etc on the condos in addition to paying the general HOA dues.

...you are correct! But, man my taxes sure are lower!