There are approximately 59 million Americans living in association governed communities and according to an article in the Star-Telegram, many of them are facing foreclosure because of past due homeowners association dues.
The article said:
Thousands of Americans who have generally kept up with their mortgages are still in danger of losing their homes because they made a fateful trade-off in this shaky economy – they let their homeowner association dues slide…in Texas, foreclosure attempts initiated by homeowner associations in 19 counties are up 30 percent from two years ago, according to Dallas-based Foreclosure Listing Services.
Many homeowners are not aware that their home’s purchase agreement may include a clause that allows their homeowners association to foreclosure on them if they fail to pay their homeowners association dues. But foreclosure doesn’t just happen after one of two delinquent payments.
A homeowner must usually be several months behind before the homeowners association files for foreclosure. Once the house is in foreclosure, the homeowners association sells it and takes what is owed to them from the proceeds. Fortunately, most homeowners associations are willing to work with homeowners who are facing financially trying times. Usually a homeowner can work out a payment arrangement with the association that will allow them to repay delinquent dues over time.
But if you’re unable to repay the association fees, bankruptcy can stop any foreclosure that the homeowners association may attempt to initiate. To find out how bankruptcy can stop homeowners association foreclosures, contact a Dallas-Fort Worth bankruptcy attorney today.