So my condo that I bought in 2006 at a steal for 156,000 is in a neighborhood where quite a few other condos are foreclosing. The one beside mine sold for 85,000 a week ago. There is no way the value will ever get back to the original sale price....I'm thinking about short saling or letting the bank foreclose. A credit hit for 7 years is worth the 60,000 in lost equity I believe.

I own a motorcycle, have a car payment, and student loan payments. Can they take my motorcycle or remaing monies from my bank account or savings accounts if I foreclose or short-sale? Discuss

9/22/2010 5:01:44 PM

9/22/2010 5:08:26 PM

why not just wait it out? are you having trouble paying your mortgage?

9/22/2010 5:24:30 PM

Where do you live at, and can I offer 70k for your unit?

9/22/2010 6:25:53 PM

Can you refinance?

9/22/2010 7:52:01 PM

I dont think intentionally foreclosing is a good idea.

9/22/2010 7:54:26 PM

when I graduated I moved to Pawley's Island, SC for a job. Turns out the job wasnt that safe (I was getting skin rashes from chemicals and the place didnt follow OSHA rules....a guy I was working with died about a month after I left), so I moved and started renting the condo to a guy. So, now they consider the property an investment and will not let me refinance. The guys rent covers about 900 a month. THE HOA started out at 100 a month, but has gone up to over 300 dollars a month. Its ridiculus. I lose about 400 bucks a month when its all said and done.

[Edited on September 22, 2010 at 7:58 PM. Reason : .]

9/22/2010 7:57:09 PM

i would talk to the HOA. There is obviously a reason everyone is foreclosing. Ask them how they are going to operate the neighborhood when all the homes are empty?

Sounds to me like they are overspending on stuff.

9/22/2010 8:12:20 PM

if the property is an investment you can't refinance? really? that is weird, cause a renter just moved into mine and i refinanced...

also...

Quote :

"why not just wait it out? are you having trouble paying your mortgage?"

9/22/2010 10:20:31 PM

just stop paying the HOA. All they can do is put a lein on it, which is only secondary to the mortgage.

9/23/2010 10:29:19 AM

http://articles.moneycentral.msn.com/Banking/HomeFinancing/weston-should-you-walk-away-from-your-home.aspx

9/23/2010 11:52:20 AM

I dont think intentionally foreclosing is a good idea

9/23/2010 12:27:21 PM

Yeah...I dont buy the HOA thing. Back in 2006 when a bunch of hurricanes hit coastal areas, the insurance company raised rates, or so says the HOA.

So the residents were paying a little over a hundred bucks in 2006...2 new buildings were built (this is when I bought the new condo), and prices jumped up to 240 and then 279, and now 300. We have the same ammenities that the folks were paying 100 bucks a month for to begin with. Adding 16 new units should have made everyones payment decrease if the same amenities were offered.

No one is going to refinance your mortgage if its appraised for 60,000 under what is owed. Believe me, I've checked around. Also, the government refinance programs are for primary and temporary residences. If you know of a bank that will refinance given these conditions, let me know. I'd be happy to get a monthly payment reduction.

9/23/2010 1:29:30 PM

Quote :

"just stop paying the HOA. All they can do is put a lein on it, which is only secondary to the mortgage."

The HOA can also foreclose.

See

http://abclocal.go.com/wtvd/story?section=news/abc11_investigates&id=7669730

This is in NC, i'm not sure if HOAs have that kind of power in SC. It varies from state to state.

9/23/2010 1:37:30 PM

Ya, you should stop paying the HOA before you stop paying your mortgage. HOA's have little power if you have no equity.

^The key is no equity. The HOA gets no money until the bank gets its money. Of course they can forclose, but why would they spend the thousands to do so, if they'll get nothing?

[Edited on September 23, 2010 at 1:46 PM. Reason : ]

9/23/2010 1:41:37 PM

oh yea i forgot about the fact that it depreciated. mine appreciated so that is why i could refinance and rent it out.

i still don't think foreclosing is a good idea.

9/23/2010 3:23:14 PM

^^

agreed, but since when have HOAs been known for sound financial decisions. The article above is a double facepalm of financial stupidity by the HOA, but they did it anyway.

9/23/2010 4:49:13 PM

300+ dollars a month for HOA holy jesus

HOA fees around northeast Charlotte was around $300-400/year in neighborhoods with sweet sports complexes and water parks (giant slides included)

9/23/2010 10:54:11 PM

<rant>

The universal popularity of HOA is the true sign of creeping socialism in america. A small group of people with extraordinary powers usurping property rights. The impact of this shit is worse than anything from national politics.

We need a court ruling requiring HOA to *prove* that their policies protect home values and that punishments help them before they can administer either. This would kill them because their benefit is largely imaginary. For god knows what reason, stupid people severely overestimate how much an uncut lawn affects property value, and they will submit to *anything* in order to get that lawn cut. It's fucking stupid, and now this widespread stupidity has made it very difficult to buy a house without a HOA.

If someone is doing something that you can prove is harming you, sue them. HOAs are not needed. HOAs effectively lower the burden of proof required for neighbors to sue each other. Why are people happy to enter into that arrangement?

</rant>


[Edited on September 23, 2010 at 11:04 PM. Reason : .]

9/23/2010 10:58:23 PM

I'm fine with my HOA. $130/year ftw

9/23/2010 11:02:08 PM

I'm pretty certain that I'll never buy a house in a place with a HOA, unless it's very, very minimal in scope and authority.

9/24/2010 12:07:02 AM

^I'm pretty much the same way. All that talk about protecting home values is BS. My neighborhood is full of million-dollar homes, and we don't have HOA.

9/24/2010 1:07:40 AM

yeah, i will never purchase where there is a HOA. the money is part of the issue, but it's the general principle of other people telling me how to manage my property. in my opinion, HOAs are for people who don't want responsibility. they want someone else to take care of their problems, and pay for it with their money and their freedom. i'll worry about my own lawn, and make decisions for myself. and when i pick out my house to begin with, i'll do enough research to know that my neighbors will do the same.

i think it's also a factor that comes from people moving so much these days. it used to be that you'd buy a home to live in, so when you picked out a community, you could be relatively certain what you were getting. in the past 15 years, a lot of new home buyers are really just looking to make a quick buck, so the neighborhood can change significantly over the course of a short time span.

9/24/2010 3:10:24 AM

i will never ever ever buy a house with a HOA. one of the most ridiculous thing i've ever heard of.

9/24/2010 7:18:59 AM

Quote :

"The universal popularity of HOA is the true sign of creeping socialism in america. A small group of people with extraordinary powers usurping property rights. The impact of this shit is worse than anything from national politics. We need a court ruling requiring HOA to *prove* that their policies protect home values and that punishments help them before they can administer either. This would kill them because their benefit is largely imaginary. For god knows what reason, stupid people severely overestimate how much an uncut lawn affects property value, and they will submit to *anything* in order to get that lawn cut. It's fucking stupid, and now this widespread stupidity has made it very difficult to buy a house without a HOA. If someone is doing something that you can prove is harming you, sue them. HOAs are not needed. HOAs effectively lower the burden of proof required for neighbors to sue each other. Why are people happy to enter into that arrangement?"

Or you could talk with your wallet and not buy in a neighborhood ruled by a HOA as myself and the four people above me chose to do. When you buy in a neighborhood with an HOA it's a vote of support for that type of living. That goes double if you don't research the HOA beforehand and become active in it once you join.

[Edited on September 24, 2010 at 9:17 AM. Reason : l]

9/24/2010 9:15:46 AM

Quote :

"i will never ever ever buy a house with a HOA. one of the most ridiculous thing i've ever heard of."

that was my number one rule to the realor when I was looking...If there's an HOA, I don't even want to see it.

9/24/2010 10:22:42 AM

Quote :

"i will never ever ever buy a house with a HOA."

what about gated/guarded communities?

9/24/2010 12:37:24 PM

Quote :

"what about gated/guarded communities? "

I'm interested in your comparison, or how you are going to somehow tie extra security back to HOAs.

9/24/2010 1:02:42 PM

it's hard to find a house in a neighborhood without an HOA unless it's a really really old neighborhood or it's out in the sticks. I don't want to spend thousands of dollars repairing an aging house, nor do I want a 45 minute commute.

But some HOAs are more restrictive than others. When I was looking, if I found a house I liked, i'd get a copy of the covenant before making an offer, and maybe even talk to some of the neighbors. If it seemed too restrictive, I peaced the fuck out.

The hood I'm in now doesn't seem to enforce ANYTHING. it's pretty awesome. Sure, my next door neighbor has all kinds of hideous lawn gnomes and statues and shit, but it ain't my yard.

I tend to leave my trash can in front of my garage because i'm generally too lazy to take it around back. No one's said anything in two years. I didn't bother getting HOA approval for my patio or landscaping. I keep a composter on the easement behind my house that's maintained by the HOA. I even planted a few trees over there, all without any approval. I could probably go on a long list of minor shit that would get more restrictive HOAs on a warpath.

Point is, just do your homework.

9/24/2010 2:10:25 PM

HOA's are not 100% the devil. They are utilized best when utilized least, but in my experience, they have protected my property value.

Exhibit A: message_topic.aspx?topic=535582&page=33#14161359

9/24/2010 2:11:21 PM

Back to your question, from my research, banks CAN come after you with a shortsale. Doesnt mean they do often, but I read an article a month or so ago that they are starting to increase their collection of short salers.

Short of things like an IRA, they can come after you for any of your assets, including money in a bank account.

I think I'd be real learly of doing this until you absolutely had to, and if you did, you should do some planning to transfer assets to other places to make it more difficult for them to find.

9/24/2010 3:35:57 PM

I'm in the process of refinancing a place that I've been renting out for 2 years. Who is your mortgage with?

9/24/2010 6:24:31 PM

^^^^

Yeah, my neighborhood (really, it's just one street) takes a good compromise: we have no HOA, but we have a very minimal covenant, with provisions to establish an HOA if the need ever arises.

The covenant pretty much says that you can't fence in your front yard, you can't have chain link fences, and a small handful of other things I can't remember offhand, that even Sanford & Son or the Beverly Hillbillies would have enough taste and good sense not to do, anyway.

9/24/2010 9:36:59 PM

yeah i have no HOA and the covenants seemed reasonable like Duke's. No fencing, get major landscaping approved. I like it a lot.

9/25/2010 4:53:27 PM

yeah, we don't even restrict landscaping, and only chain-link fences are prohibited.

There are only like 10 houses, though.

9/25/2010 10:49:08 PM

nobody in our neighborhood really has remotely similar landscaping so im guessing they dont care. my house has next to none so i feel bad

9/26/2010 12:13:34 AM

Quote :

"they have protected my property value. Exhibit A: message_topic.aspx?topic=535582&page=33#14161359"

Prove it. You linked to a lot of whining but not a single shred of evidence that it harmed you in any way

Quote :

"Or you could talk with your wallet and not buy in a neighborhood ruled by a HOA as myself and the four people above me chose to do. When you buy in a neighborhood with an HOA it's a vote of support for that type of living. That goes double if you don't research the HOA beforehand and become active in it once you join. "

False dichotomy. I can live outside of a HOA and still want them destroyed just as I can live in one and want them destroyed. You and your friends seem content to be herded away by HOAs


[Edited on September 26, 2010 at 1:24 AM. Reason : Or were you taking the opportunity to brag about how you think you have money?]

9/26/2010 1:16:44 AM

I agree that HoA's have generally gotten out of hand, but they do serve a purpose. I think Duke described it best: very minimal in scope and authority. HoAs can/do have an affect on your property value so long as an HoA is perceived as a desired amenity to the property.
When you survey people to find out why they "like" the HoA concept, its honestly like watching a real life version of the sneetches unfold.

But just a couple of examples (not rendering an opinion on these, just floating them).
Many developers use HoA covenants as a sort of portion and/or quality control in order to more effectively move their product.
Condominium Complexes use them for grounds and common area maintenance.

OP: fwiw, you might also consider voluntary petition (bankruptcy). It will freeze your foreclosure proceedings until the petition has been reviewed. We had a homeowner keep his rental house through one more summer that way.

[Edited on September 26, 2010 at 2:00 AM. Reason : OP]

9/26/2010 1:50:52 AM

Charlotte Observer - Is foreclosure best option to get debt paid?

http://www.charlotteobserver.com/2010/09/25/1713698/is-foreclosure-best-option-to.html

9/29/2010 10:48:00 AM

How the hell did this thread get off topic on HOA when the issue is walking away from an underwater mortgage?

The best BBQ ever is Dickeys in Cary.

What you are asking about is called strategic foreclosure. There is gobs of information about it online.

The short sale is going to require you to document a financial hardship, which it sounds like you do not have. It is also going to require you to stop paying and try to sell, which is a huge pain.

The foreclosure is only a good idea if you can get them to release you from the deficiency. (maybe stop paying and when they file or are about to a few months later offer to do a deed in lieu of FC and they release you)

If you have assets (not motorcycles) like land, or other properties they can attach judgments to they could go after that. Either way you should research this and consider all of your options.

10/1/2010 8:46:04 PM

Some jobs require credit checks, will look terrible and forget about gov jobs......

10/3/2010 9:05:43 PM

Not all gov jobs require credit checks. Public safety jobs often do, but most don't.

10/4/2010 8:38:04 AM

Yeah, I just dont want them to go after my savings (401K and IRA), or what I've got in the bank. I currently have a car payment and student loan payments along with the mortgage and HOA payment. I've heard stories of banks checking all of your account hisotry for the past 6 months looking for large withdrawals and trying to back collect if you've paid off other loans. Is there any truth to this?

10/4/2010 3:11:30 PM

Yes. It's kind of like fraud.

10/4/2010 4:05:45 PM

in regards to HOAs, this was a pretty amusing story, but the domain in which the original thread was created is dead...if you can find a working copy, it's well worth the read

http://grassrootsmotorsports.com/forum/off-topic-discussion/fighting-boots-by-hired-hoa-funny/1150/page1/

10/5/2010 8:01:20 AM

fraud yes

not to mention the fact that you posted a thread about it

11/4/2010 8:11:43 PM

I don't see how HOAs even have legal authority. They're complete bullshit and a total invasion of privacy. And yes, privacy among and between private citizens is a right. HOAs violate this right.

11/6/2010 7:55:11 PM

If you sign a contact with them then they have the right to enforce things listed in said contract.

11/7/2010 5:16:23 PM

^most people dont read them.....and those are the ones that complain the loudest come D Day......

11/7/2010 10:08:05 PM

Quote :

"I'm pretty certain that I'll never buy a house in a place with a HOA, unless it's very, very minimal in scope and authority. "

Agreed. It's one of the things my parents made sure to do when they bought their house. Even in the 90s though it was difficult to find a HOA-free neighborhood in Raleigh. I wonder if that's gotten even worse over the years.

11/8/2010 11:45:25 AM