Maureen - We represent quite a few banks as the listing agent for their non-performing assets. Of course, I'm not an attorney and, unlike Tim, I don't even play one on TV, I will say the answer isn't cut and dried. Depending on certain situations the bank could potentially be liable for HOA fees unpaid by the developer prior to the foreclosure; however, that is highly unlikely. Most do pay the HOA fees but only from the date of the foreclosure forward. They are treated just like any other owner in the development. The good news is that the HOA has been turned over to the property owners. This will remove the issue of expecting the bank to be in charge of maintaining the funds and keeping things up. Needless to say if serious issues arise, consult a real estate attorney who is familiar with your area.
Depending on your own resources you will probably find this is an excellent time to invest in a lot or two and build your personal portfolio. It may take a few years before we climb out of the current market condition but we will. The market will bounce back and be stronger and those that can afford to purchase now and hold for a while will be glad they did!
If there's any way we can help, please don't hesitate to let us know!
Bill and Cyndi Daves
Coldwell Banker High Country Realty
Call 866-394-2384 and ask for TeamDAVES!!