Advice to condo owners financially underwater with mortgages & fees
Posted on Thu, Oct 14, 2010 @ 06:42 AM
Is it legal for a HOA to foreclose on a condo in order to rent the unit to offset maintenance fee arrears and stepping aside when the bank gets possession? Is it something to do maybe with "Certificate of Title"? My wife and I own three condos, one of which is our home, and are in arrears on our HOA fees and mortgage.
We are innocent victims of these economic times. "INNOCENT" is just a word I know but it is the TRUTH. When I say "innocent" I mean ordinary so-called middle class people working hard to make payments in the face of a horrific economic recession and then finally caving in because it is all too much for them to handle as the end does not look good or soon. IT SEEMS TO ME THAT THE BANKS AND THEIR LAWYERS AND OTHER LENDING INSTITUTIONS, NOT TO MENTION THE BIGGEST CULPRITS OF ALL, THE CORPORATIONS AND THE GOVERNMENT THAT THEY CONTROL, HAVE PLAYED A HUGE ROLE IN THIS CATASTROPHE AND SHOULD BE HELD ACCOUNTABLE TO SOME AUTHORITY.
Nevertheless, this is what is happening at our resort comprised 938 condominiums in Palm Harbor Florida 34684 which I mention as a fact in that our HOA is "NOT CASH STRAPPED" as is the case in many other situations. Meanwhile we are working very hard to get our lives back on track financially and diligently trying to sell our condos where sales are just not happening yet and the market is dead except for a very few low-ball offers. Our hope, of course, is that they will be sold, hopefully at a small profit, in order to satisfy the banks (short sales) and our HOA arrears situation.
Through our struggles we find out what I have described to you above which undermines everything that we are trying to do in the face of adversity. We and thousands like us. It seems to me and our personal financial advisers that there is an under-the-table arrangement being made here between the HOA, the banks and the lawyers and we were wondering what comments you would have as to legality etc. We have read a lot of your comments in other situations on your blog and were pointed in your direction by a friend.
Meanwhile, personally, the offers from the banks are getting better and better as the months roll along. Our personal home, as an example, has dropped in mortgage value from approximately $432,000 to $270,000 and of course there are always a few hitches - that is why we have been advised not to respond. Our total indebtedness is in excess of a million dollars. WE DO KNOW WHAT THIS EVENTUALLY MEANS BUT WE ARE STRUGGLING, I GUESS, AGAINST ALL ODDS TO DO EVERYTHING WE CAN TO NOT LET THIS HAPPEN.
We know that all situations are not the same but it would seem prudent and right 1) to leave people in their homes that are trying their best, 2) bank review of their principal and interest demands ON THEIR MORTGAGES, 3) bank review in relation to what each situation/individual could afford and 4) start, however small, in a direction to helping the current financial crisis end in this country amongst residential homeowners.
It seems to us that if values were brought down to realistic levels in the residential arena and that realistic mortgages/loans were adjusted so that people could afford to make payments and keep their homes would be a small, but logical, step in the right direction and a beginning approach to the terrible financial problems facing this country today.
TO MAKE A SIMPLISTIC STATEMENT: IF EVERYTHING HIT ROCK BOTTOM TOMORROW AND A BOTTOM VALUE, SAY ON HOMES FOR STARTERS, WAS ESTABLISHED THEN BANKS WOULD WRITE MORTGAGES FOR THOSE VALUES TO OCCUPYING HOMEOWNERS/PEOPLE WHO COULD AFFORD THEM AND HOMEOWNERS LIVES WOULD RETURN TO NORMAL MAKING MONTHLY PAYMENTS AND ALL THAT GOOD STUFF. EVENTUALLY THEY WOULD BE IN A POSITION TO SELL THEIR HOMES WITH A PROFIT AND MOVE ON INTO ANOTHER HOME AS WAS BEFORE. THAT"S JUST TOO SIMPLE.....I GUESS.
It seems counter-productive to take such steps (HOA, BANKS & LAWYERS) as we've described above to you for the greed of certain sectors of our economy, however small or big these sectors they are...at least it would be a start. I would appreciate any advice you might be able to give us and any comments you may have to help us to understand. We thank you for your attention and time.
Yours truly....John & Nadine