It is estimated that one in five American homeowners is subject to homeowners' associations. Homeowners' associations levy dues, which may range anywhere from $200 to $500 per month, to cover the cost of services that the municipal government typically takes care of. This may include streetlights, sewage systems, road repairs and the like. Homeowners' associations also make rules for their communities. Although these rules may vary, some of them have seem outright ridiculous, such as having homeowners dye brown spots on their front lawns. If a homeowners' association is running low on its budget because a major repair needs to be completed, it may levy a "special assessment" on top of whatever normal monthly dues are being charged.
How to homeowners' association dues relate to foreclosure? In the past, homeowners' associations rarely foreclosed on homeowners. Currently, however, we are seeing a rising trend of associations foreclosing on residents, even those who are only 60 days past due on their association fees. You see, many homeowners are unaware of the fact that homeowners' associations may have the ability to foreclose on their homes, even in the face of only a few hundred dollars in unpaid fees.
In addition to facing foreclosure, failing to pay homeowners' association fees may also pit neighbor against neighbor. If a homeowner fails to pay dues and special assessments, the burden of financial responsibility will fall to the other homeowners.
Whether it is in dealing with the homeowners' association or the lender, facing foreclosure may place any individual or family at risk of losing their home. As a Long Island bankruptcy and foreclosure defense firm, Jacoby & Jacoby is fully committed to protecting the interests of homeowners as they deal with foreclosure, excessive debt, wage garnishment and more.
To find out how the firm can help you, contact a Long Island foreclosure attorney today.