Living in an HOA community comes with benefits, which is why people are willing to pay nearly five percent more on properties. Although HOA fees increase the overall cost, they relieve residents of many worries.
Even with the best background checks and deposits, however, you can still find people who take advantage and stop paying.
If you're investing in property, it's essential to understand the HOA foreclosure process. Take a look below to see what a HAO foreclosure involves.
What Is an HOA Foreclosure?
Alarming news has recently come out, showing that more than 35% of people aren't keeping up with their monthly bills. Falling behind on small payments should indicate large issues that can impact your business plan.
If you're a property investor, you must know how to stop HOA foreclosures and identify the signs. Looking at your monthly payments will determine if you need to place a lien on someone's home. This is acceptable if they go into the delinquent stage of HOA fees.
Until the owner makes payments and comes out of delinquency, they are at risk of being evicted. A homeowner's association also has the right to place liens on the property for unpaid attorney fees, interest, and late charges.
HOA Foreclosure Process
To begin the foreclosure process, the HOA must send an official notice to the homeowner. This notice should include info about the delinquent assessments and an itemized statement of the charges owed.
There are a few ways to resolve delinquent assets, like HOA rental properties. After the notice is given, the homeowner has 30 days to make payments. Under California law, homeowners can submit requests for a meeting with the board to develop a plan.
If you need help planning your next steps, take a look at our board member resources. It also helps to know that the HOA assessment is not the same as the member's dues. HOA dues are regulalry paid, whereas special assessments are one-time payments.
What Can You Do?
Working with community association managers can be one of the most beneficial ways to handle foreclosures.
At PMI South Bay, we can customize your property management plan no matter what community you're investing in. Since rentals in HOA communities cost a little more, you might encounter payment issues.
Recurring missed or late payments should be a warning that your tenants can't afford their homes. Our team has over 10 years of experience managing properties and working with real estate investors. We can help you navigate the process without ruining your reputation or losing money.
If you haven't worked with association managers before, here is everything to know! With our help, you can fight HOA foreclosure and defend your investments.
Find Help with Foreclosures in Santa Clara
Owning property in Santa Clara, California can be highly profitable. Unfortunately, when HOA fees go unpaid, your investment account can point south.
There are many details on handling a HOA foreclosure, which is where we can help. Our HOA management services can ensure you're successful and prevent foreclosures. If you want to learn more about our full-service association property management services, take a look here!
