You can’t tell their isn’t accounting system that will allow to banks to more timely paid their HOA fees. Deadbeats!
Now It’s the Big Banks That Are Getting Foreclosed On
Published: Friday, 20 Jul 2012 | 3:06 PM ET By: Diana Olick CNBC Real Estate Reporter
Call it a case of man bites dog. Since the start of the housing crash, millions of Americans have lost their homes to foreclosure. Many of them lived in homeowner or condo associations.
These are organizations that collect monthly dues to pay for amenities, like added security, maintenance and recreational areas; one in five Americans currently lives in an association-governed community.
These associations have been hit hard by the housing crisis, as many delinquent borrowers stopped paying their monthly HOA dues. In some cases, HOA’s, which do have the authority in many states, managed to foreclose on properties even before the banks, by using the back dues as liens.
Now the homeowner associations are taking it one step further. They are going after the banks, claiming that several of the largest lenders are not paying monthly HOA/condo fees on homes they’ve repossessed and now hold as bank-owned properties (Real Estate Owned, or commonly called REO’s).
“The association has both a statutory right under the Florida laws as well as rights under its restrictive covenant in the community, and it pursues those rights just like any other owner,” says attorney Ben Solomon of Florida’s Association Law Center. “ In this legal scenario JP Morgan// [JPM Loading... ()
]// is no different than any other homeowner in the community who has failed to pay.”
Solomon is representing Homestead Florida’s Keys Gate Community Association, which claims JP Morgan owes two years of back dues worth over $19,000 on a foreclosed home. It is one of dozens of foreclosure suits against several of the nation’s largest lenders by homeowner and condo associations claiming back dues.
“I pay my dues, other people pay their dues, I just feel that JP Morgan should have paid theirs,” says Don Gonzalez, a homeowner in the Keys Gate Community.
Gonzalez says the foreclosure crisis has hit his neighborhood hard. The association can no longer pay for a full time security guard, an amenity that drew Gonzalez to the community in the first place.
Fountain Valley Overview
| Median home price is $509,000. Based on a rental parity value of $569,000, this market is fairly valued. |
| Monthly payment affordability has been improving over the last 11 month(s). Momentum suggests improving affordability. |
| Resale prices on a $/SF basis increased from $261/SF to $266/SF. |
| Resale prices have been falling for 12 month(s). Price momentum suggests falling prices over the next three months. |
| Median rental rates increased $182 last month from $2,180 to $2,362. |
| Rents have been rising for 12 month(s). Price momentum suggests rising rents over the next three months. |
| Market rating = 4 |
Proprietary OC Housing News home purchase analysis 
10424 PARAKEET Cir Fountain Valley, CA 92708
$525,000 …….. Asking Price
$525,000 ………. Purchase Price
7/16/2012 ………. Purchase Date
$0 ………. Gross Gain (Loss)
($42,000) ………… Commissions and Costs at 8%
============================================
($42,000) ………. Net Gain (Loss)
============================================
0.0% ………. Gross Percent Change
-8.0% ………. Net Percent Change
#NUM! ………… Annual Appreciation
Cost of Home Ownership
——————————————————————————
$525,000 …….. Asking Price
$105,000 ………… 20% Down Conventional
3.80% …………. Mortgage Interest Rate
30 ……………… Number of Years
$420,000 …….. Mortgage
$98,449 ………. Income Requirement
$1,957 ………… Monthly Mortgage Payment
$455 ………… Property Tax at 1.04%
………… Mello Roos & Special Taxes
$131 ………… Homeowners Insurance at 0.3%
$0 ………… Private Mortgage Insurance
………… Homeowners Association Fees
============================================
$2,543 ………. Monthly Cash Outlays
($312) ………. Tax Savings
($627) ………. Equity Hidden in Payment
$134 ………….. Lost Income to Down Payment
$151 ………….. Maintenance and Replacement Reserves
============================================
$1,889 ………. Monthly Cost of Ownership
Cash Acquisition Demands
——————————————————————————
$6,750 ………… Furnishing and Move In at 1% + $1,500
$6,750 ………… Closing Costs at 1% + $1,500
$4,200 ………… Interest Points
$105,000 ………… Down Payment
============================================
$122,700 ………. Total Cash Costs
$28,900 ………. Emergency Cash Reserves
============================================
$151,600 ………. Total Savings Needed
——————————————————————————————————————————————-
This property is available for sale via the MLS.
Please contact Shevy Akason, #01836707
949.769.1599……
sales@ochousingnews.com…..
We're sorry, but it seems that we're having some problems loading MLS # S705322 from our database. Please check back soon.
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$470,000 10291 MONITOR Dr |
0.81 miles 4 bd / 2 ba 1,448 Sq. Ft. |
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$569,000 18839 QUINCE Cir |
0.85 miles 3 bd / 2 ba 1,460 Sq. Ft. |
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$434,000 17827 LA ROSA Ln |
0.92 miles 3 bd / 1.5 ba 1,372 Sq. Ft. |
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$349,500 3032 CLUB HOUSE Rd |
1.08 miles 2 bd / 2 ba 1,250 Sq. Ft. |
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$298,000 9904 ARGYLE |
1.16 miles 4 bd / 1.5 ba 1,254 Sq. Ft. |
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$539,500 1650 TEXAS Cir |
1.22 miles 3 bd / 2 ba 1,311 Sq. Ft. |
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$635,000 1959 FLAMINGO Dr |
1.41 miles 3 bd / 2 ba 1,495 Sq. Ft. |
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$549,000 10726 EL SILBIDO Ave |
1.65 miles 3 bd / 2 ba 1,455 Sq. Ft. |
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$649,900 20242 INTERIOR Ln |
1.68 miles 3 bd / 1.75 ba 1,500 Sq. Ft. |
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$469,000 17021 WARD St |
1.71 miles 3 bd / 1.75 ba 1,448 Sq. Ft. |
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Fannie Mae Revises Growth Estimates Downward
A weakened second quarter may indicate a slowdown in economic activity for the rest of the year, Fannie Mae reported Monday.
According to a report from the GSE, its Economic & Strategic Research Group may have been too optimistic in its original 2012 GDP growth projection of 2.2 percent. Its revised growth rate estimate is 2.0 percent.
The group attributed the waning economic growth to drops in consumer confidence and employment opportunities.
“Breaking pace with a strong first quarter, consumer spending has weakened in recent months as the consumer confidence index fell to the lowest level since January,” said Fannie Mae in a release. “Contributing to the downturn is an uncertain job market. The June employment report showed significantly fewer hires compared to the first quarter monthly average, and ongoing concern regarding the European debt crisis and domestic financial markets may suppress a meaningful increase in private payrolls before the end of the year.”
Despite the downgrade in anticipated economic growth, Fannie Mae found a silver lining in the housing market. Year-over-year, home sales increased by 9 percent, and single-family housing starts are nearly 20 percent higher (although still below healthy norms). Fannie Mae expects increased residential investment to contribute to economic growth for the first time since 2005.
In addition, the GSE’s June 2012 National Housing Survey showed that homeowners have greater confidence in one-year-ahead home price expectations. The share of polled customers who said they would buy a home if moving increased by 6 percentage points up to the highest level seen since the survey began.
The group expects housing starts and sales to continue to grow through the rest of 2012 and 2013, owing largely to record low mortgage rates and the belief that housing prices have hit bottom and are likely to increase in the future.
“The data from the past month collectively point to decelerating economic growth, but growth nonetheless,” said Doug Duncan, chief economist at Fannie Mae. “It’s now clear that our bias toward downside risks noted in the June forecast have materialized, pushing down our already modest growth projections. However, despite signs of deteriorating momentum for economic activity, housing continues to be a bright spot as news from the housing market has been relatively upbeat, presenting a rare upside boost to the economy.”