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Seeking safety and facilities many homeowners bought units under the umbrella of HOAs. But the downturn caused the situation to turn ugly with homeowners failing to pay their monthly dues to the association and the latter not only foreclosing on the delinquent owners but increasing the assessment fees of others so as to have funds to run the show. The law is stepping in.
Caught between the bank and the construction company , trapped in a scheme of owner financing her house, Nelda Rodriguez lost her shelter to foreclosure to the bank due to no fault of hers; she had been making her payment but the construction firm did not advance it to the bank.
According to CoreLogic the pace of foreclosures has picked up speed in Harlingen City and around Texas. City Attorney is working with City Commission and other non-profit units to bring down the numbers. The blame is placed on ARM loans, which after being initially low have started to increase causing borrowers to stumble.
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