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Any association with a foreclosure on its record may suffer these consequences:

  • The revenue stream from the foreclosed-upon unit will cease, which can affect the cash flow of the association thus hampering its ability to pay its bills.
  • Ultimately, the owed amounts may not be repaid, and the association must then, write off its debt involved in the foreclosure.
  • If the unit remains unoccupied for an extended period, it can become a target of vandals, squatters, errant weather situations that can freeze pipes, leak rain and so forth.
  • All other owners must assume a fair share of expenses assigned to the allocated interest in the foreclosed-upon unit, without the benefits of ownership of those interests.

Every association is different, and with this list, the board can begin to quantify its risks before taking foreclosure action, and add others that are specifically involved.

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Q: If you foreclose on a condo how is the hoa affected?
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