70% of HOAs Are Underfunded

70% of HOAs Are Underfunded

They have the ability to foreclose on houses, even if it’s to collect a few hundred dollars of unpaid debt.

A growing number of homeowners associations do not have enough money stowed away in reserves to pay for repairs and replacements in neighborhoods over time, housing experts say. 

About 70 percent of association-governed communities are underfunded, a 12.5 percent increase compared to 10 years ago, according to Association Reserves. Homeowners associations are increasingly going after home owners who fail to pay their dues. Beyond fines and notices, they are foreclosing on delinquent home owners. See How to Deal with Your Homeowner's Association