Banks are Now are Increasingly Facing Foreclosure Because of Association Dues

In an ironic twist, many banks and mortgage servicers which have reposed millions of homes are now facing a foreclosure crisis.

Many homes that have been seized in the wake of the housing crisis were owned by people who belonged to homeowner or condo associations. According to CNBN, one in five homeowners belong to an association. These associations collect dues for the amenities such as enhanced security, recreational facilities and maintenance, but they are losing revenue.

Many states give homeowner associations to right to foreclose on a property for unpaid dues in the form of liens. Now in the face of lost revenue, associations are moving to foreclose on the banks who are failing to pay the dues owed on these properties. Homeowner Associations say some the country’s largest banks.

Banks and mortgage servicers have come under scrutiny for neglecting their duty to maintain foreclosed homes, leaving neighborhoods blighted and more vulnerable to crime and vandalism.

Foreclosure attorneys have worked very hard to help keep many houses in the hand of homeowners which is both a benefit to neighborhoods and homeowner associations.

It is worth the time and money to retain a foreclosure lawyer and have them begin challenging a bank’s decision to seize a home. There are a number of avenues they can explore such as a mortgage modification or a personal bankruptcy. Even a short sale is better than foreclosure.

Homeowners shouldn’t allow a default notice to make them feel hopeless or powerless. With an experienced foreclosure attorney at their side they could very well save their homes.