Florida HOAs filed 73% of America's association foreclosure suits against their own members
HOA's are making the home crisis worse
HOA Spy indexed 104,659 Florida homeowner and condo associations and found 10,296 foreclosure suits brought by associations against their own members, 460,412 claims of lien, and 277,047 lis pendens recorded against homes. Florida accounts for 73% of the nation's association foreclosure filings, and 6,661 associations have lapsed or fallen out of corporate standing — enough to stall every sale in a community. Debts that begin at a few hundred dollars can end in auction.
A home that costs more each month to keep and less to sell is the crisis in one sentence.
- weberer
>Is Florida the worst state for HOA foreclosures?
>Florida ranks 1st of the states on HOA Spy for foreclosure suits brought by associations, with 10,296 of 14,168. The count depends on which courts are indexed in each state as well as on the associations, so it is a count of records, not a rate.
Florida is known for having the strongest "sunshine" laws in the country, that make government records transparent. That makes this statistic pretty useless.
- firesteelrain
This article slightly mixes condo and HOAs. HOAs are covered under 720 and it does not have the same rules (which are less stringent) than condo’s
Condo rules are much stricter than HOAs
State of Florida also puts caps on fines - the max is $100/day or $1000 for a single violation. But that’s after a period to cure and then due process meetings (made up of homeowners not board members) who may waive or not fine at all or defer.
A homeowner can also fix the problem and later have the same problem again but not be fined if they fix in time.
The foreclosures are for extreme cases and a lot of HOA attorney shops don’t charge a retainer but will tack on fees that are paid back to the HOA attorney and association.
To get to that point takes a long time
- pretzellogician
I had the thankless task of being executor for my parents' estate. I distinctly remember the Florida HOA that made that so much worse.
After expressing their utmost sympathies and saying they'd help any way they could, mere weeks later they put a legal "estoppel" on the sale of the house due to some overgrown vines(?), which of course, were never mentioned by anyone.
- jghn
I would never buy a house that was part of a HOA. For people that like them, more power to ya. But I don't understand the people who complain, just don't buy into an HOA then?
- ryandrake
I used to live in Broward county, Florida, so I'm not surprised that it shows up as number one on the OP article's list. It's totally insane how much power HOAs have in that state. The idea that an entity other than a mortgage lender you owe can "foreclose" and seize the home you live in is total lunacy.
- CGMthrowaway
People love to hate on HOAs but not all are bad, and in general they are a good example of self-governance, when the alternative is having people who DON'T live in your neighborhood regulate your neighborhood. Which would you prefer?
- kvuj
How would foreclosing make the housing crisis worse? Wouldn't another family purchase the home thus creating a net zero?
- BeetleB
(My comment is about detached houses).
I (thankfully) live in a neighborhood without an HOA. Just one block away, there is an HOA. No reason to prefer that street (and home values aren't higher there).
This isn't an upper class neighborhood. It's mixed. Half of the residents are blue collar workers.
Over the years, I would think of reasons/annoyances where I'd say "Yes, while I'm glad I don't have an HOA, if we did have one it would take care of this or that annoying problem with the neighbor."
Then I spoke to friends who live in HOA neighborhoods and are on the HOA board. They told me clearly that "No, in practice, the HOA is not going to get involved in those (serious) matters. All they care about is the veneer (house appearance) and really petty rules." They also told me the purpose of the HOA was to justify its own existence. The owners get almost nothing for the funds they collect, other than a 3rd party company driving by and noting minor violations.
Another friend just had to spend $4000 to paint the front of his house. He's temporarily living in another state for a work assignment, and he and several others got notices that the HOA has decided to change the "look" of the neighborhood. Otherwise his house looked fine (not worn out paint or anything). I bet someone in the neighborhood has friends with a painting outfit.
I can stomach the idea of an HOA if they solved real problems (sanitation, etc), and not just appearances, but they don't. Even if it's in their bylaws, […]
- groos
The way to deal with a bad HOA is to get on the board. Normally, HOA boards attract the most petty minded people because most of the normal people living in the community are too busy but if a bunch of like-minded people get on the board, they can bring sanity back.
- mym1990
I can prompt an LLM to refute this and it would give me 5 reasons HOAs are making things better. Hard to read this and really come away with a sense of what the truth is. HOAs and homeowners have always been at odds but HOAs do provide some benefit in large communities. I hardly feel like they are making the “home crisis” worse.