Wednesday, March 21, 2007

Bad Day at Acqua Vista

I have a membership at which updates foreclosure information on a daily basis. Today three units at Acqua Vista went into foreclosure. As noted on this blog I believe that virtually every unit at Acqua Vista is worth less today than K. Hovnanian sold the units for a few years ago.
View Downtown San Diego Foreclosures


Mark in San Diego said...

Yes, I am afraid Acqua Vista is ground zero downtown for the meltdown. . . actually some of those 17th floor penthouses are starting to look like good value. . .but then if the HOA is in trouble, it might not be such a good deal. . .as a former officer of a HOA in Northern Calif, I know that when we put leins on properties in the early 1990's, there was not enough equity left after a bank sale, and we got ZIP!. . .if 10% of units go to foreclosure or short sales, this will be a big problem.

Farley said...

I noticed on Lew Breeze's site than no AV units have sold there in the past month.... with about 30 units on the market. Ouch.

Mr. Brightside said...

Things are not well at Acqua Vista. I agree with Mark the the HOA there could be heading towards some serious problems.

What if 30% of the units are not paying their HOA fee? I would assume that the rest of the people are going to have to pay more.

The concept of a bankrupt HOA is very interesting. Does anyone know if this is possible and what would occur if it did?

Dave said...

The HOA is unlikely to go BK. What's more likely to happen is that there will be a special assessment levied on the remaining owners to cover the shortfall resulting from the foreclosures (assuming the unpaid dues can't be recovered). Theoretically, the people who (eventually) buy the foreclosures will then pick up payment of the HOA dues but won't be responsible for the dues that went unpaid prior to their ownership. It's not a pleasant situation, but shouldn't be fatal to the HOA.

Anonymous said...

Isn't a HOA's lein senior to any bank loan? If it could never be wiped out in a foreclosure.