Posted by: The Tim

Tim Ellis is the founder of Seattle Bubble. His background in engineering and computer / internet technology, a fondness of data-based analysis of problems, and an addiction to spreadsheets all influence his perspective on the Seattle-area real estate market.

3 responses to “Decline in Foreclosures Continued in April”

  1. softwarengineer

    I’ll Know More After My HOA’s Emergency $400K Loan Meeting May 23rd

    But the current board proposal is a $2800 lien on each of the 110 units in the HOA [evidently the banks are so tight right now, they wouldn't just approve a $400K loan to a HOA for maintenance on just HOA fees alone, they wanted our homeowners' units as collateral]. An additional $20/mo HOA fee is also being suggested. This totals $51/mo in fees and liens for each HOA home owner. If approved, I plan on immediately paying the lien off by its theoretical July 1st deadline. The HOA fees and lien payments [if not paid off by deadline] would theoretically total up to $221/mo.

    Now, a $51/mo 10 year payment increase plan for the lien and fees may seem small to a lot of us, but can be devastating to those living on small fixed incomes [it subtracts from their grocery budget]. Yes, this can [worse case scenario] lead to foreclosures in my neighborhood. If the defaults capture enough units, my HOA will bankrupt, leaving the City of Kent to take possession of the HOA establishment.

    I’m guessing what would happen in a “worse case scenario” like that; but the HOA’s roads [repairs too I imagine] would be Kent’s responsibility. The waterline replacement too. Perhaps the city [at home owners' expense/lien?] would then attach water meters for all units to pay their $50-100/mo per unit water/sewer bills. I imagine the cabanna would be sold by the city as a SFH or business. The greenlands are mostly sloped and skirt water land protected areas….they’ll probably become city parks. Actually, it doesn’t sound that bad….LOL

    One unit is for sale this week and we already had a new foreclosure HUD home for sale before this fiasco. Stay tuned, this could be a big mess.

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  2. Kary L. Krismer

    RE: softwarengineer @ 1 – Is this a condo or a neighborhood HOA? If a neighborhood HOA, what is the need for the money?

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  3. softwarengineer

    RE: Kary L. Krismer @ 2

    SFH Neighborhood, with Condo Style Group Locked Mail Boxes

    $90K to repave cracked roads, $90K to replace 2″ broken water pipes [illegally accepted by building inspector(s), they needed to be 4"] throughout, and money to replace park playground is most of the expenses.

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