On Foreclosure, Again

As if to add insult to injury.

Many of the new residences built during the past ten years were constructed in planned communities. Large subdivisions with lots of houses that mega-developers convinced politicians would be good for "affordable housing." Of course, not one house was "affordable," but they got their permits and ran with it.

Since they were planned communities, part of the selling point were the covenants, conditions and restrictions (CC & Rs) which had requirements on everything from paint colors to maintaining common areas and landscaping. It created a homogenized look.

Of course, those things cost money, so homeowner's associations were created which established fees for each home.

And now, as money gets tight, many homeowners, while still paying the mortgage are not paying homeowners dues. And the homeowner's associations are filing for foreclosures.

The way this works is that the homeowner's associations are in junior positions to the lenders, which means if they foreclosure, they have to pay off the lender in order to own the home. Could be expensive. But in the meantime, it's pitting neighbor against neighbor. And that is frightening.

Something is still seriously wrong in this country.