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Rise in Houston Foreclosure Listings By Homeowners' Associations

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By : John Cutts    99 or more times read
State legislators met with several homeowners to address the escalating number of Houston foreclosure listings by homeowners’ associations. The rise in the number of foreclosed properties by HOAs raised concerns about its overall impact on the area’s housing market.

According to real estate analysts, HOA foreclosures are impacting foreclosed homes for sale in Texas in a negative manner. Some house owners have complained that HOAs foreclose once they fail to pay, but paying for home loans have become even more difficult as more people in the city lose their jobs.

Several homeowners have called for a change in rules regarding foreclosures by homeowner associations. The complaints and requests from these homeowners were heard by the Texas Senate Committee in a public hearing held at the Texas Southern University.

Some legislators have claimed that homeowner organizations should be better policed to prevent them from abusing their powers and from contributing to the housing problems that will likely find home foreclosures further rising in numbers in the city and the whole state.

Residents have reported that Houston foreclosure listings by HOAs are rising because the associations kept adding other charges, like lawyer fees, on top of fines once a resident failed to pay for the loans.

Meanwhile, lawyers who represent HOAs in the city argued that associations do not wish to see homeowners losing their properties and adding to the number of foreclosed homes for sale in Texas. HOAs are last resorts and foreclosure threats make home owners pay for late assessments, they added.

The problem of HOA foreclosures had been brewing in the city since 2009 when the Texas Homeowners for HOA Reform attempted to have a legislative bill approved which would have required a homeowners’ vote, not just a board vote.

The bill was meant to revise restrictions on deed and add new provisions to existing rules that failed to pass by just a single vote. Existing rules allow board members of an HOA to add provisions to rules even without the approval or consensus of other members of the HOA.

Homeowners continue to seek the help of legislators to make changes to HOA foreclosure rules in an effort to mitigate the rising number of Houston foreclosure listings by these associations and to save their homes.
John Cutts has been educated in the finer points of the foreclosure market over 5 years.

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