Question: What can the homeowner association do with bank owned properties that go delinquent or let their tenants break the rules?
Answer: Bank owned properties can become common in HOAs when the real estate market is not moving homes quickly enough. Foreclosed homes can remain vacant for long periods, may have yards full of weeds, maintenance issues and HOA fees may go unpaid in months.If your HOA is having such problems with bank owned properties, here are several good options for solving these problems:
- Treat the bank like any other owner â€“ don’t wait for a sale to get paid.Â Â
- Use liens to ensure payment of assessments and correction of rule violations.Â Â
- Aggressively pursue foreclosure if the bank refuses to pay. Since there is no longer a mortgage against a bank-owned property, any HOA lien will be in first position. This means it is extremely likely the HOA will be paid quickly after a foreclosure action begins. If the owner-bank does not pay in full and a foreclosure sale is completed, the HOA would end up owning the property free and clear! by Eric R. Jaworski, Esq.