We are in a tough Real Estate cycle now, read the article in USA Today, here is short version of it.
Home owners could Pay $5-10 more per month for homeowners' association fee.
Home owners could Pay $5-10 more per month for homeowners' association fee.
It could be an example of how foreclosures are causing more peripheral problems. Tim Larson with the Community Association Institute, which represents HOAs across the country, says associations often raise fees to offset a loss in collection.
"When we have a number of owners who are not making their maintenance fees each month, everyone else has to contribute in order to cover the costs, so everyone has to pay more in their maintenance fees," said Larson.
"It affects their bottom line, it affect the income that's necessary to pay the water bills, the electric bill and to mow lawns and so on," said Larson.
Larson estimates that only 2 to 5 percent of the HOAs in the metro area are raising fees with foreclosures as one factor. He emphasizes that many considerations go into the process of raising fees and predicts that this is a temporary trend. Homeowners like Bochmann hopes that prediction holds true.
This year's foreclosure filings in the metro are expected to eclipse the filings in 2006, which set a new record.
"When we have a number of owners who are not making their maintenance fees each month, everyone else has to contribute in order to cover the costs, so everyone has to pay more in their maintenance fees," said Larson.
"It affects their bottom line, it affect the income that's necessary to pay the water bills, the electric bill and to mow lawns and so on," said Larson.
Larson estimates that only 2 to 5 percent of the HOAs in the metro area are raising fees with foreclosures as one factor. He emphasizes that many considerations go into the process of raising fees and predicts that this is a temporary trend. Homeowners like Bochmann hopes that prediction holds true.
This year's foreclosure filings in the metro are expected to eclipse the filings in 2006, which set a new record.
No comments:
Post a Comment