The number of foreclosed dwellings falling under Arizona house auction listings creates further problems for homeowners in the state. With foreclosures resulting in the continuous increase of abandoned homes in the state, most homeowners associations (HOA) reportedly try to recoup unpaid dues from these abandoned properties by increasing fees for the rest of the members.
The state's foreclosure rates remain at very high levels particularly in key cities, with Phoenix home foreclosures as some of the examples. According to state housing market statistics, around 10% of HOA members in Arizona have walked away from their residential properties in the past one year and a half.
With the number of home foreclosures in Arizona continuing to rise, fees collected by HOAs continue to decline in turn. This has forced most of the associations to increase the amount of dues paid for by existing members, cut down on services and target homeowners who are late in paying their monthly HOA fees.
Because of this, those homeowners who have so far avoided losing their homes to listings of house foreclosures are forced to shoulder the additional financial responsibilities and make up for the slack created by homeowners who have abandoned their dwellings.
Most HOAs operating in areas with the highest number of foreclosed properties under house auction listings are reportedly under bankruptcy threat. These areas include Maricopa, Hunt Highway and Buckeye. The possibility of an HOA bankruptcy can create further problems for the state's housing market, with buyers facing possible problems of obtaining title insurance which could then lead to homes becoming impossible to purchase or sell.
According to local real estate analysts, HOAs are likely to continue to face such problems in the coming years. They stated that HOAs do not have the means to cope with delinquency rates of 20 to 38%, particularly with no help to expect from cities and towns that are also suffering from financial problems. They added that a 5% delinquency rate is all an HOA can take, particularly in such market conditions.
Analysts stated that the only recourse left for HOAs to recover some of the fees lost to thousands of homes that have fallen under foreclosure house auction listings is to pursue homeowner members who have been delinquent in paying their monthly dues.
Search home foreclosures in Arizona cities:
- Tucson Home Foreclosures
- Mesa Home Foreclosures
- Glendale Home Foreclosures
- Scottsdale Home Foreclosures
- Gilbert Home Foreclosures
Related Posts:
- Listings of Federal Homes for Sale Are Just Part of the Problem
- Unpaid Dues May Lead to Repo List
- Buyers of Countrywide Foreclosure Homes Get Some Relief in Arizona
- Growing Listings of Foreclosed Homes Burdens Minnesota Cities
- Law Affecting Foreclosed Property Auction Listings Signed in New York
Comments on this entry are closed.