The Wall Street Journal reports that there is another sign that California’s foreclosures could jump in 2009: Delinquencies on dues (assessments) owed to homeowner associations have risen sharply. This is not a surprise to those of us in the trenches. Many managers report to us that they can barely keep up with the maintenance and repair issues because they are spending so much of their time dealing with delinquent assessment issues and matters.
The Wall Street Journal Article suggests that “[t]he homeowner association delinquency rate can serve as a leading indicator of sorts because homeowners usually stop paying dues before they stop paying their mortgage.” Click here to read the article in the WSJ.