Mortgage Servicing Fraud
occurs post loan origination when mortgage servicers use false statements and book-keeping entries, fabricated assignments, forged signatures and utter counterfeit intangible Notes to take a homeowner's property and equity.
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These home owners are up to their ears in GARBAGE.

If we don't PAY our HOA fees, BAD things happen.

When banks who own property with HOA fees, why aren't they FINED HEAVILY?????
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h gosh
The property should be foreclosed on - just as it would be foreclosed on if a consumer owned the condo.  What's wrong with the CAI attorneys? 

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The HOA could foreclose, but they would be second in line to the mortgages and other liens already recorded.
When I was treasurer of an HOA a few years ago, we looked at that scenario on a property. Our attorney suggested we just wait until the property was sold and then collect at the closing of the foreclosed house.
The HOA has an absolute lien, in most states, to collect past due fees. The problems lately have been subdivisions in a few states (Nevada, Florida, California) where speculators bought new construction planning on flipping and never could flip the house. So they defaulted on the mortgage and just never paid the fees. There are some condos and hoa's in Florida with 1/3 of the properties deliquent with their local association.

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h gosh
If the "bank owns the property" (meaning other than a lien via mortgage), then a foreclosure has already taken place.  Therefore, the HOA CAN bring a foreclosure action against the bank for non-payment of HOA "fees" (not "dues").  Please note, I am not talking about the past due fees accumulated from the mortgagor, but the fees that start accumulating at the time of foreclosure.  The same with taxes - banks don't pay property taxes either!!!
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H Gosh,
I understand where you're coming from here, I was thinking before the default sale.
The HOA also has to look at the cost of filing foreclosure. There are attorney fees, court costs and filing fees associated with each filing.These are never recovered. And generally, the noteholder will pay up to current, then let them lag again, starting a whole new cycle.
And if they successfully acquire the property, they have the recurring costs of maintenance and insurance, plus the taxes on the property for local governments. And the liability of having a vacant property can be huge. Imagine a house with a pool and picture the bad things that can happen. And while most associations carry some kind of insurance coverage, these generally only cover common elements, like picnic areas, etc. The HOA would have to insure every property they own separately.
At the same time, they have to try to sell the property to try to recoup these costs, In many markets, finding a buyer is the toughest part.
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