FORECLOSURE as a last resort

 Homeowners who simply refuse to pay their assessments – as they contractually agreed to do when they purchased their homes – are cheating their neighbors, their community and themselves.  When homeowners are delinquent on their assessments, either their neighbors must make up the difference or services and amenities must be curtailed.  That affects everyone in the community, perhaps even leading to a decline in property values.

There is no universal threshold that should trigger a foreclosure.  The decision should be based on many factors, including the amount of the debt, the financial health of the association, the reason for the debt and the homeowner’s willingness and ability to bring the account up to date.  The magnitude of this decision requires an approach that is fair, reasonable and consistent with practices and procedures established by your associations governing documents.

Community Association Management does not support people losing their homes to foreclosure for insignificant sums of money.  Even when the debt is significant, foreclosure should be considered only after other approaches have failed. 

Used as a last resort, the lien and foreclosure process gives your associations a mechanism to ensure the resources necessary to provide services protect property values and meet the expectations of the community as a whole.  Placing a lien on the property, with the ability to foreclose, is typically enough to get delinquent residents to meet their financial obligations to the community.

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