Like the Bank, Associations can foreclose on a property. This is due to a Homeowner not paying their maintenance or assessments. While they are not as common, they go through the court process quicker. To learn how Association Foreclosures can be more detrimental than Bank Foreclosures, contact 954 Foreclosure Attorneys, PLLC at (954) 237-7740.
Association Foreclosures can be more detrimental than Bank Foreclosures
Most people think that Foreclosures only deals with Homeowners losing their property for not paying their mortgage. This is far from the case. Associations have been very active in filing Foreclosures. This has been devastating to Homeowners for the following reasons:
1. Homeowner may be current on their mortgage
If the Association forecloses on them, they will lose title but will still be responsible for the mortgage. If this occurs, there will be no reason to continue paying because they can no longer sell their home. In some instances, they have paid their mortgage in full but will still lose the property because they failed to pay their dues. While this is rare, this is the worst possible scenario for them.
2. Associations take less time to Foreclose
Bank Foreclosures last from 7 months to two years. During this time, Homeowners can save money and remain in the property. On the other hand, Associations move quicker. This is due to Homeowners having less defenses. As a result, if they are unable to pay, they can be removed from the property in a shorter time.
3. Credit will take a harder hit
If the Association forecloses, a Homeowner will have it on their record. They may also have a Bank Foreclosure on their credit. On the other hand, if they continue to pay their dues and sell their property during the Bank Foreclosure, their credit will be less effected.
We always advise Homeowners to pay their Association dues. Even if there is a Bank Foreclosure, they can remain in the property. In addition, if they have equity, they can still sell and make a profit. If you have questions about how Association Foreclosures can be more detrimental than Bank Foreclosures, contact 954 Foreclosure Attorneys at (954) 237-7740.