Mr Williamsburg, Revolutionary ideas on real estate!Hampton Roads Virginia

Anyone who stops paying a mortgage knows the bank can come after their home.

But homeowners associations foreclosing on properties? Its now happening in Williamsburg VA.

That’s right. Ford’s Colony Homeowner Association (FCHOA) is  foreclosing on property as owners stop paying their monthly assessments

The two properties being foreclosed on by Ford’s Colony HOA are both building lots with golf course frontage. The lot at 123 James Bray was purchased way back in 1987 for $75k. It is assessed by James City County for $146k. The other lot being foreclosed on is located at 4 Bates Ct, it was purchased in 1994 for $60k and is assessed for $117k.

Both appear to be owned by the same owners: Colonial Designs / William and Martha Bryant of Atlanta Ga.

The foreclosure sales are being handled by Philip S. Chapman, Esq. with Tarley Robinson, PLC in Williamsburg, VA.  The lots will be offered at public auction on Friday, August 5, 2011, at 10:00 a.m. on the steps of the entrance to the Williamsburg/James City County Courthouse

( note: we were unable to verify the amount of unpaid HOA fees due on these lots)

Homeowners associations require dues to maintain common areas — pools, parks, landscaping and lighting. After owners default, the associations are left with few options. They can either slash services or raise the fees.

Homeowner Associations generally attempt to work deals with homeowners and only foreclose after dues go unpaid for more than a year or longer, experts say. That way they avoid the attorneys fees and court costs that come with foreclosing. By foreclosing, the associations are then on the hook for maintaining the seized properties.

Frank Rathbun, a spokesman for the Virginia-based Community Association Institute, CAI, said associations don’t want to foreclose, but will as a last resort.

"Associations have to operate as the businesses they are," Rathbun said. "Homeowner associations have a responsibility to maintain the community."

Map location of lots in Ford’s Colony

Virginia  law allows homeowners associations to foreclose on a home or property if the owner owes money to the association.

The Virginia Property Owners’ Association Act governs the operation of property owners’ associations. According to the act, homeowners associations can file liens on residents if they don’t pay assessments, fines or other costs associated with both.

Nationally, about 62 million people live in 310,000 homeowners associations, condominium communities, residential cooperatives and other planned communities, according to the Community Association Institute. A survey by the group in October found that 65 percent of homeowners associations have delinquency rates exceeding 5 percent, up from just 19 percent of associations in 2005.

What about you ?. Do you think Home Owner Associations should be allowed to foreclose when HOA  fees are not paid ? 

This post was authored by local resident and REALTOR, John Womeldorf. John is known around town as Mr. Williamsburg, for both his extensive knowledge of Hampton Roads and the historic triangle, and his expertise in the local real estate market. His websites, WilliamsburgsRealEstate.com and Mr Williamsburg.com were created as a resource for folks who are exploring a move to Williamsburg, VA , Hampton Roads VA and the  surrounding areas of the Virginia Peninsula. You can reach John by phone at 757-254-8136 or email him atJohn@MrWilliamsburg.com I look forward to serving your real estate needs! Best, John

Filed under: Ford's Colony, Foreclosures, James City County Williamsburg VA Neighborhoods, williamsburg va |