Texas Foreclosure Homes Impact Homeowners’ Associations

by cassy82 | September 15, 2009 at 09:01 am

42 views | 0 Recommendations | add comment

Many homeowners’ association are hurting due to the increase in the number of Texas foreclosure homes, recession and slow collections. To continue their operations, homeowners’ associations are increasing dues, forcing foreclosures and imposing emergency fees.

The number of Texas foreclosure homes dropped by 7 percent last month from July but still 4 percent higher compared to August the previous year. The figures showed that one out of 838 houses in Texas was in some stage of foreclosure process, earning the state the 27th position nationwide in terms of foreclosure rate.

The growing foreclosure problem in the state has severely affected homeowners’ associations in Dallas-Fort Worth area. Adding to the associations’ problems are the recession, unemployment and rising number of abandoned and vacant houses.

All these problems resulted to slow collection of association dues. To boost their collections and their coffers, many homeowners’ association in Texas have increased their dues, imposed emergency fees and forced foreclosures.

By Cassiano Travareli