The Communicator - Volume 2, Issue 1 - (Page 14) Crisis Impacts Directors How to stay afloat financially while property values sink By Steve Callaway and Kevin Mallett, Esq. THE NEWS HAS been awash lately with reports of problems within the financial industry. Defaulted sub-prime loans are a target of blame. These defaults are causing a decrease in market values of our real estate and homes. How does this situation impact common interest developments (and the boards that are charged with managing their affairs)? Simply put, the devaluation of property values is putting many unit owners in a position where the balance on their loan is greater than the value of their home. Adjustable Rate Mortgage loans are hitting trigger points where payment amounts are resetting at higher (and in many cases unaffordable) levels. Many unit owners are deciding to walk away, to skip their mortgage payments, and to move somewhere more affordable. Unfortunately for your association, the monthly dues related to these units also come up short, which puts pressure on your association’s budget. The board must continue to try and collect from the unit owners. The temptation is to let it go until the unit sells. While it may make sense to lend a hand to your neighbors in distress, you are not being entirely fair to the unit owners that are paying. It will most likely take months and possibly years to sell a distressed unit. The association accruing 14 • The Communicator Mortgage
Table of Contents Feed for the Digital Edition of The Communicator - Volume 2, Issue 1 The Communicator - Volume 2, Issue 1 Contents President’s Message Does Your Insurance Agent Know Something You Don’t? Lien Stripping and Chapter 13 Bankruptcies Mortgage Crisis Impacts Directors Legislative Bill Status Report Annual Holiday Awards Banquet & Casino Night 2009 Events & Educational Calendar New Members Index to Advertisers The Communicator - Volume 2, Issue 1 The Communicator - Volume 2, Issue 1 - The Communicator - Volume 2, Issue 1 (Page Cover1) The Communicator - Volume 2, Issue 1 - The Communicator - Volume 2, Issue 1 (Page Cover2) The Communicator - Volume 2, Issue 1 - The Communicator - Volume 2, Issue 1 (Page 3) The Communicator - Volume 2, Issue 1 - The Communicator - Volume 2, Issue 1 (Page 4) The Communicator - Volume 2, Issue 1 - Contents (Page 5) The Communicator - Volume 2, Issue 1 - Contents (Page 6) The Communicator - Volume 2, Issue 1 - President’s Message (Page 7) The Communicator - Volume 2, Issue 1 - Does Your Insurance Agent Know Something You Don’t? (Page 8) The Communicator - Volume 2, Issue 1 - Does Your Insurance Agent Know Something You Don’t? (Page 9) The Communicator - Volume 2, Issue 1 - Does Your Insurance Agent Know Something You Don’t? (Page 10) The Communicator - Volume 2, Issue 1 - Lien Stripping and Chapter 13 Bankruptcies (Page 11) The Communicator - Volume 2, Issue 1 - Lien Stripping and Chapter 13 Bankruptcies (Page 12) The Communicator - Volume 2, Issue 1 - Lien Stripping and Chapter 13 Bankruptcies (Page 13) The Communicator - Volume 2, Issue 1 - Mortgage Crisis Impacts Directors (Page 14) The Communicator - Volume 2, Issue 1 - Mortgage Crisis Impacts Directors (Page 15) The Communicator - Volume 2, Issue 1 - Mortgage Crisis Impacts Directors (Page 16) The Communicator - Volume 2, Issue 1 - Mortgage Crisis Impacts Directors (Page 17) The Communicator - Volume 2, Issue 1 - Mortgage Crisis Impacts Directors (Page 18) The Communicator - Volume 2, Issue 1 - Legislative Bill Status Report (Page 19) The Communicator - Volume 2, Issue 1 - Legislative Bill Status Report (Page 20) The Communicator - Volume 2, Issue 1 - Legislative Bill Status Report (Page 21) The Communicator - Volume 2, Issue 1 - Annual Holiday Awards Banquet & Casino Night (Page 22) The Communicator - Volume 2, Issue 1 - 2009 Events & Educational Calendar (Page 23) The Communicator - Volume 2, Issue 1 - New Members (Page 24) The Communicator - Volume 2, Issue 1 - New Members (Page 25) The Communicator - Volume 2, Issue 1 - Index to Advertisers (Page 26) The Communicator - Volume 2, Issue 1 - Index to Advertisers (Page Cover3) The Communicator - Volume 2, Issue 1 - Index to Advertisers (Page Cover4)
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