Neighbors Suffer from Foreclosures
For homeowners who have been diligent in their mortgage payments and even their association bills, the foreclosure crisis may not be something you will be interested in. Sadly, the problems in the mortgage industry have no longer made these homeowners immune to the adverse effects.
For instance, if you are living in a neighborhood, which has an increasing number of foreclosures, you can expect home values to drop. In addition to this, these foreclosure homes can also become eye sores especially if they have been abandoned and neglected for a long time.
On the other hand, homeowners living in an association-managed neighborhood will also suffer from the many foreclosures. In order to cope with the deficit created by these foreclosed properties, associations have increased assessment fees as well as association fees.
If not, the entire neighborhood will suffer. You can expect unkempt lawns, moldy walls and ill-maintained amenities. Sometimes, the association will also experience difficulties in paying utility bills. In other words, there is no money left to take care of these abandoned homes that drive down home prices.
The problem of most homeowner’s association can actually be observed nationwide and is not isolated to the small neighborhoods. Even large and affluent neighborhoods have been suffering under the weight of these foreclosure – related concerns. It is increasingly becoming difficult for these associations to maintain the high quality of service they usually provide.
In the end, the neighbors of these foreclosure homes are the ones experiencing the impact of the mortgage mess. Distressed homeowners are actually better off in a way since they do not need to worry about these things. Once the foreclosure has been completed, they can simply start anew.
Of course, the best solution is for the neighborhoods to come together and help these troubled borrowers avoid foreclosure. This way, everybody wins.