Generally speaking, people think of foreclosures as events that start with a bank; if you miss your mortgage payments for too long, the bank takes your home back to get the value of the property. However, did you know that a condo association or a homeowners association may also be able to start the foreclosure process?
Sometimes, this does not even happen because you are not making your mortgage payments, but because you are not paying the fees that go with living there. Many times, there may be HOA fees for things like maintenance or public spaces — like a pool — that all people in the association are able to use. These fees go on top of your mortgage payments for the property itself.
This is something that all homeowners need to be aware of, but especially those who are buying new homes. Some estimates suggest that a huge percentage — as high as 80 percent — of the new builds in the United States are set up under home owners associations or condo associations.
On the whole, around 65 million people in the U.S. are part of these associations.
Of course, the HOA fees differ from one association to the next, but typical estimates put them in the range of $300 a month to $400 per month. You can see how this may be tough to pay if finances are tight.
You do not want to lose your home in Texas, so make sure that you know exactly what may put it in jeopardy. You also need to know what legal options and rights you have if you find that a foreclosure may be coming.
Source: MarketWatch, “Condo-fee foreclosures become headache for homeowners” Daniel Goldstein, Jan. 09, 2015