Money world

In today’s troubled economic climate, almost no residential community is immune to the threat of foreclosure. And a foreclosure can affect more than just a single home. Proactive measures must be taken to ensure the overall vitality of entire neighborhood or residential community.

Many such communities have a homeowners’ association or a board of trustees. They have a fiduciary duty to resolve delinquent association fees.

To that end, the company that manages the association should have in place a collection procedure and an attorney to aid the board in implementing decisions related to any foreclosure. An attorney has the ability to place a lien, allowing the association to attempt to recover delinquent association fees.

Maintaining a foreclosed property’s curb appeal to the community association’s standards is critical to sustaining the real estate value of the other homes in the area. The association’s management company, board members, trustees and homeowners should work together to protect their investments.

To preserve adjacent properties and to protect homeowners’ interests when a residence becomes vacant, community associations should keep utilities on. Continued presence of heat and electrical services prevent pipes from freezing and breaking in cold weather. They also give an empty residence a lived-in look. Also important is keeping the residence free of trash or anything else that might cause odors, attract insects or produce other problems. Neighbors can help by contacting the association’s management at the earliest sign of foreclosure activity.

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