Snap people are not paying thier Association fees.

Condos Feel the Mortgage Crunch - washingtonpost.com

Condos Feel the Mortgage Crunch
Behind on Payments, Many Owners Forgo Association Dues

By Nancy Trejos
Washington Post Staff Writer
Saturday, April 7, 2007; Page D01

At Glen Waye Gardens Condominiums in Silver Spring, 21 owners are more than 30 days behind on their monthly condo fees. Two other owners have not paid since they bought their units, one in April 2005 and the other in September 2006. Both properties went into foreclosure.

The lost fees, which make up 5 percent of the association's annual budget of $1.3 million, have pushed the condo board to dip into its reserve funds to fix the roof and replace a water heater.

Vicki Vergagni, board president of Glen Waye Gardens Condominiums in Silver Spring, where 21 owners are at least a month behind on fees, said:
Vicki Vergagni, board president of Glen Waye Gardens Condominiums in Silver Spring, where 21 owners are at least a month behind on fees, said: "We've had to use way too much of our reserves." (By Susan Biddle -- The Washington Post)


"When those things go bad, you have to spend on them. You have no choice," said Vicki Vergagni, president of the 214-unit community's board. "We've had to use way too much of our reserves."

Guess that last part about using the reserve funds sound funny to you too. Because if my memory serves me right it is against the law to use reserve funds for anything other than repair and maintenance of property. So now they have an under funded budget and a draining reserve fund. I wonder how those are going to be brought back into the black? Special Assessments which=Debit

Here is another funny thing about this in Maryland. With no financial disclosure on Townhouse and Single family Associations sales someone could move in and not know the community is bankrupt. Or what the status of the physical assets of the overall community

I also like the WashPost only showing the lien and foreclosure remedy for getting deliquient dues paid...Since I was one of the founder of an alternative method that does not result and lawyers getting rich and communities actually getting paid. One would think they could dig a bit deeper and find www.CommunityCollections.com

Good luck if your buying a home in Maryland because you will need it. Seeing how there is no law to help or one coming anytime soon.

Technorati Tags: Condo, HOA, Assessments, Foreclosure