The power of HOAs in Arizona – azcentral Rewind

The power of HOAs in Arizona – azcentral Rewind


HOA’s are largely unregulated, and they have a lot more power than you might think. They can and do foreclose on homes. Ya, really. So what is exactly is an HOA and who does Arizona have so many? And how exactly can they take away our homes? This is azcentral REWIND. HOA’S sometimes get a bad rep, but they do serve a purpose. A lot of times they can help spur development of new neighborhoods by taking some of the burden off of cities. Building roads, installing streetlights, and putting in parks- it’s costly, and many cities can’t or don’t want to foot the bill. During the 1950’s and 60’s, the federal government had policies that encouraged new housing developments in order to support the country’s booming population. That led to the rise of Home Owner’s Associations. Announcer: Sun City, an active new way of life. Golf course, activity center, community center… Sun City is probably the earliest example of an HOA supported community in Arizona. Announcer: It’s like a resort! HOA’s are also thought to keep up property values. Some HOA’s offer amenities like sports courts, pools or parks. And if you live in a condo, your HOA probably handles your landscaping, and fixes any problems you might have on the outside of your home, like a leaky roof or a crumbling walk way. They can, in some cases, save your skin when major expenses come your way. Having an HOA can be a good thing, if you’re willing to pay for it. Fee’s can range anywhere from $50 a quarter to $1000 a month. But not everyone is a fan. They are often the topic of horror stories. People have even written books on how to fight them. Seriously- we found this on Amazon. Right now, there are about 9,000 HOA’s in Arizona. How do we know? Lots and lots of hard, time consuming research. cause there’s no clearing house for HOA’s or governing body regulating HOA’s in Arizona. In all, about half of all Arizonans live in a community governed by an HOA. And in Arizona, like many other states, HOA’s have a lot of power. They can, and sometimes do, foreclose on people’s homes. That’s right. HOA’s can take your home. Normally, when we think of a foreclosure, we think of a lender taking someone’s home because they haven’t made their mortgage payments. Or someone not paying their property tax, there’s a lean, an investor buys it. Investors can buy all of these properties, as well as HOA foreclosures. They can be a foreclosure for as little as $1200 in missed payments. It’s all buried in the mound of paperwork you sign when you’re buying your home. In some neighborhoods, $1200 can pile up in just a few months of missed payments. Also, that $1200 in missed payments can quickly balloon out of control when legal fees and interest kicks in. HOA’s can also foreclose if an owner misses a year of payments. It’s whichever comes first. In Maricopa County, some homeowners are losing their houses at sheriff’s auctions, for just $100 more than they actually owe. HOA’s are actually leading the latest surge of foreclosure’s in the Phoenix area. Last year in Metro-Phoenix, 330 people lost their homes to an HOA foreclosure. That’s a record. Legislation to regulate HOA’s has been proposed in the past, but most recently, Governer Doug Ducey vetoed a bill that would have added more regulation to these huge groups. He did sign a bill that increases the transparency of HOA meetings, essentially making them regard as meetings that are open, and preventing them from non-emergency matters. So, what can you do? There’s really only one option; Find a good lawyer. This is azcentral Rewind, where we listen to your questions about recent events, and take a step back from the action to give you the answers. Let us know what you think on twitter or facebook, and hit us up if you have any more questions. For more, go to azcentral.com

3 thoughts on “The power of HOAs in Arizona – azcentral Rewind

  1. hoas are pure cancer they serve no purpose

  2. Two options, dont buy a home in an HOA infested neighborhood

  3. let the stupid people pay…its all over the web they suck….300k for a 50×100 lot …hell with them

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