subject: Purchasing An Hoa Foreclosure [print this page] Purchasing an HOA Foreclosure
When people become interested in buying Tucson foreclosures, they are often surprised that there are different types of foreclosures that they can bid on. If you are interested in bidding on a foreclosure, you often find that many others are interested in doing the same thing. One of the types of Tucson foreclosures that does not get as much publicity are the homeowner's association (HOA) foreclosures.
Why HOA foreclosures are on the rise
The homeowner's association is taken an aggressive stance when it comes to people not paying their bills. In the last few years, the number of foreclosures due to the homeowner's association has skyrocketed. In most situations, before someone stops paying their mortgage, they stop paying their homeowner's association assessment long before.
Normally, past due assessments are collected by means of the filing of HOA liens, pre-lien letters, or past-due notices. With lenders foreclosing on properties at record rates, and with many homeowners turning to bankruptcy in order to discharge debts, the homeowner's association has to go through judicial vs. non-judicial foreclosure or small claims court to recoup their money. This means that for the most part, the homeowner's association would not receive their money at all or only a small portion one of the reasons that they started aggressively pursuing payment.
When it comes to funding community upkeep, the fees are the homeowner's association's only source of income. When the homeowner's association's assessments are not paid, it is up to other homeowners in that particular development to make up the difference. Understandably, this is not a popular measure.
Why buying a HOA foreclosure works
One of the benefits of purchasing a HOA foreclosure is that you not only have the opportunity to own a property, but you can also help the homeowner when they are in a tight financial situation.
Remember, there are many investors that are competing with one another, trying to profit from Tucson foreclosures through conventional methods. It is possible to help someone and reduce the level of competition you might face on a bid by bidding on a HOA foreclosure.
by: Tucson Real Estate
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