Desperate condo, homeowner groups given new way to grab overdue fees
Revenue-starved condominium and homeowners associations struggling to keep the taps running and the lawns mowed have found a novel way to squeeze money from units that don’t pay what they owe.
It’s called a reverse foreclosure, a tool that can force banks to pay association maintenance fees when unit owners don’t.
It’s a way for associations to halt the decline that begins when one owner quits paying maintenance fees, followed by another, then another, forcing a reduction in general maintenance, driving down property values even more, and leaving a community riddled with vacancies and vandalism.
Also, it’s a way for associations to stick it to banks — who they are convinced have been sticking it to them since the real estate meltdown began.