Foreclosure Crisis Affecting Assessment Increases
You only need to turn on the television, open a newspaper, or go online to know the foreclosure crisis is continuing to make headlines across the nation. In fact, just today, President Bush unveiled a foreclosure relief plan aimed at stemming the tide of foreclosures resulting from adjustable rate mortgages. The impact of the rising numbers of foreclosures on assessments in homeowners associations is also making news. 9NEWS posted a story that cites the foreclosure crisis as one of the triggers for assessment increases in Colorado. Only time will tell the extent to which foreclosures will affect assessment hikes in associations.
Also, as a reminder, the revisions to Colorado's foreclosure law will go into effect on January 1, 2008. To learn more about how the changes will affect community associations, check out our December 2007 edition of Community Essentials.
I manage an Association which is feeling the effects due to a loss in collections as more units go into foreclosure. Coupled with delinquencies, the combined impact resulted in higher assessments for next year for those who make timely payments.