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It’s a disturbing trend and one that isn’t tracked by any government agency. But according to at least one nonprofit research group, association boards are initiating more foreclosures than previously. According to a Houston-based nonprofit research study, association-initiated foreclosures jumped from 500 in 1995 to 2,200 in 2007.

Association boards have found themselves unwilling enforcers of properties and unpaid bills. That’s in part due to the fact that of the 300,000 homeowner’s associations in the country, over 50 percent of them face serious financial problems. So says a September 2010 survey by the Community Association Institute.

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It’s no secret that foreclosures are crippling the condominium industry. Record numbers of unit owners are in or dangerously close to foreclosure. Many condo associations are struggling to keep occupancy levels up and wondering how to deal with so many vacant units at once. And amid this foreclosure crisis comes yet another – condo owners are delinquent on their condo fees. In some cases, the delinquencies total in the hundreds of thousands.

 Such is the case for one Florida-based condo association, whose association board announced recently that its residents are delinquent to the tune of $675,000. That figure represents half of the West Palm Beach-based Palm Beach Grande association’s resident population. With 106 of its 304 units facing or in foreclosure, it’s a crisis situation for the condo association. Read more…