State of Communities: What you are not being told about the housing problems

So back in 2007 we posted this blog about the abasimal state that CIC where finding themselves in because of the economy.

The basic message still is PAYIN FEES.

State of Communities: What you are not being told about the housing problems

So here is the accelerator. Prior to this recently turn of events more of the units in CIC where owned by single owners and a few multi/investors and devoplers prior to transition or those that have not for other reason.

Now Banks, Fannie Freddy, FHA, HUD, VA, REIs, and some huge Funds have vast holdings of Condos, Coops, Single Family Townhouse Association properties. And way too many cases while owners of these units they are terrible community members. They don't keep up the units, they dont votes, they dont show up at meetings, they dont even know the board, and MOST of all they dont pay their assessments. So the comunity is unable to meet the obligation in the budget.

More over when they resale a unit in the community to someone they rarely comply with the basic disclosure of documents and financial information. Which is a violation of the law and it seems that they are doing this in collusion,

Maybe not~ what ever they reason these agencies, banks and mortgage lenders are not doing the community any favors and the buyers is plain getting screwed. There are only what 100 Million voters in them.

MD Court of Appeals limits CIC's ability to use court to collect delinquent fees.

Ask Nancy

IN what is a pretty shocking decision for the State of Communities.  The Maryland Ct of appeals has recently ruled that private communities aka condos coops hoas cannot come to the court with leins on properties for small amounts of money.  What the courts decision leave unsettled is who's responsibility is it to establish communities that need the fee to meet agreed to budgets as state in every Resale package other then places like DC that don't require a package because they have not for some reason enacted the Uniform homeowner association provisions which mirror the Condominium Act ones they seems to think are important.   #just saying. 

We are going to be posting a link to more in-depth coverage of this from minds over at AskNancy.Info. 

 

Dodd Chastises Senate's 'Newest Members' For Their Behavior

Hey Senator Dodd how about you get off your decorum and get something done that helps the people and not the bankers and specifically Fannie and Freddy. You know very well that both of these agencies while in possession of thousands of homes are not paying the HOA or Condo dues and, both agencies are failing to provide docs or finical statements at closing... All of which are violations of law and their under writing guidelines.
Read the Article at HuffingtonPost

It's against the bylaws and just stupid how about these reasons.

Residents furious after HOA fees lost in stock market

A September letter from HOA property manager Nicki Williams to homeowner Jennifer Lowery-Bell states the board opened an account with Ameriprise and made the initial one-time investment in September 2007 of more than $80,000. As of July 2009, less than $77,000 was in the account, posting a more than $14,000 loss as of July 31.

Lowery-Bell said she learned about the investment in late July from board member David Bosworth, a Campus Way South homeowner who joined the board in September 2007. Bell then wrote two letters to Williams in August and September 2009 inquiring how the losses will be refunded and if any other investments have been made.

"They said they would assess the situation and get back with us, and it was never done," Lowery-Bell said of the board's comment at a September meeting about the situation.

The 321 homes in the community each pay $76 per month in homeowner fees, a total of $292,752 per year, said Lowery-Bell, who also is founder and coordinator of Campus Way South Homeowners Neighborhood Watch Program.

Williams, who collects the HOA fees and provides financial management to the board of directors, said she believes the board is acting in the best interest of the homeowners and that the board decided to invest the money in the Ameriprise account because interest rates at the time were low.

"$14,000 isn't a loss unless you want to retrieve your money today. I can't say it's right or wrong [to invest the money]," Williams said. "There was never any real thought that what they were doing was wrong."

Clearly the management company is lying or cant read the Bylaws of the Community they are offering management advice too.  I wonder if someone got a fee for steering this community to this investment firm and how many other communities have done the same?

What we do know is that the State of Maryland or anyone else for that matter could careless about bout issues in private communities which is why they only approve them for new developments.

Homeowner Associations, Bylaws, Stock Market.

Fannie Mae: "Deed For Lease" Program Will Let Thousands Rent Out Homes To Avoid Foreclosure

btw if these homes are in a Condo or HOA that already have too many non- owner occupied units this will further undermine the community. Yet who cares in DC if your whole community is failing, not fannie, freddy or hud they refuse to pay their assessments or even to disclose the financial health of the community to the new buyers they are sucker into them. What's a law or underwriting regulation when it comes to the government? Answer NOTHING.
Read the Article at HuffingtonPost

Foreclosures Are More Profitable Than Loan Modifications, According To New Report

That's funny cuz they are not paying community assessments while they are in control of the property and most in not all of the condo, townhouse and hoa communities have plenty of foreclosed homes and they are running negative budgets and face huge special assessments and possibly bankruptcy in some cases



btw expect no help from the GOV or agencies like FANNIE, HUD, or the VA they are paying either and even raised the delinquency rates to 15 percent cuz they don't want too.



stateofcom­munities.o­rg
Read the Article at HuffingtonPost

Why no one claims an empty home.

Bank-Owned Homes Surge, Communities Stung « The Washington Independent

The growing number of bank-owned properties in foreclosure scarring neighborhoods across the country.

The volume of bank-owned foreclosed homes — known as REOs, or real-estate owned properties — is growing at an alarming rate, compounding the foreclosure crisis by sticking hard-hit neighborhoods with vacant and often trashed homes that drive down property values even more. REOs are foreclosed homes that lenders take back after they don’t sell at foreclosure auctions or sheriff’s sales. They keep the homes in inventory until they can be sold again.

The bottom line is that many of these homes( as many as 3 out of 5) are in condos, town home or single family homeowner associations. And, the banks or FANNIE don't want to be on the hook for the assessments.

So they just let the homes sit idol. To them nothing is happening. To the community the rest of the owners are dealing with not only the blight of them, they are dealing with the budget shortfall that empty homes cause and there is absolutely no help coming out of Washington DC.

If the number of home in the US that are in common interest communities is any where near the number trade groups like CAI post ( http://www.caionline.org/about/press/Pages/IndustryLeadersFormCAIChapterinNewMexico.aspx ) then this housing debacle is far from over and your government is trying it's best to cover it up.

Forclosures, Condo, Coop, HOA, Fannies, Banks, Homes.