Board's recourse beyond foreclosure on unit

I could really use some common sense opinions on this because right now denial seems to be the prevailing attitude at our condo, which I perceive to be in an un-recoverable financial condition.

We have huge assessments for repair and most people can't pay-loans have been denied and delinquencies are skyrocketing. Those trying to sell have had no bites, even at 1/10th of what they used to go for. Several with mortgages have gone back to the bank at sheriff sales.

Given today's market, the threat of foreclosure by the board for delinquent HOA fees and large repair assessments seems to be toothless at best if people can't even give their units away.

*If owners are literally walking away from units such as this that are mortgage free but delinquent, wouldn't the board be nuts to foreclose on them, thereby spreading the delinquencies out to increasingly over-burdened owners? Seems like dissolution of the HOA is where this is headed.

*Does the board have any legal recourse for collection beyond foreclosure?

Missy

In todays environment once the property is foreclosed upon, the HOA being in a position behind the lender, the HOA lien is pretty much worthless. We will see this continue to get worse for the next year and a half. The bottom has not been hit yet, and until the job market improves, it will continue this way. I would say HOA's are pretty much in a Catch-22 situation.

Richard,

Which is why the smart BOD's are budgeting for bad debts so they can write off those uncollectible delinquencies. My BOD carefully reviews all the delinquencies each month and decides which ones should be written off. This is after the attorney has attempted to collect for several months.

Helen,
I really don't think it makes much sense for any association that is dysfunctional to foreclose on property. They got enough troubles. It doesn't sound as if that would be a good way to build up an association. I have seen property sell at fire sale prices, but a shaky association probably couldn't get a loan anyway.

Well Robert I think all associations by there very nature are dysfunctional.If she says properties are mortgage free what would she need a loan for. And to the person who originated this post I think your name is Melissa, but I apologize if I am wrong, seeing that you are from Washington (assuming this is Washington State) I can already tell what the major problem is. Wood rot, wood rot and more wood rot. Poor design, leaking roofs. Now I don't know how big the assessment is but I know that many property managers that we have interviewed pride themselves on their "million dollar renovation projects." Maybe you should rethink your huge assessment and take repairs in small phases starting with the roofs and working your way down. At least something will get done and someone will buy a unit for the cost of a roof repair.Then you can move on from there.

Well thank you Robert, and you should be thankful that you have a core of people willing to tackle the problems most of the time. I have a core of people willing to be a problem most of the time.