Community Association Collections and Foreclosures
The economic housing and financial crisis of 2008 caused by predatory private mortgage lending and unregulated markets, significantly changed the housing market during the early 2000s, having dramatic consequences. Along with the excessive mortgage foreclosure crisis, property owners found themselves unable or unwilling to pay their homeowner association maintenance assessments, which are critical to the day to day operation of the community. However, like with any other attempt to collect a debt owed, a number of collection agencies and law firms engaged in improper lien foreclosures. Oftentimes the improper lien foreclosure stemmed from unintentional actions, resulting from lack of supervision, or an increase and unmanageable volume of collection cases.