DSNEWS.com: Servicers: Stop HOA Liens From Interfering With Investor Profits
By Xhevrije West
March 10, 2016
For some time there have been questions surrounding how servicers can protect the lien rights of their investors with regard to the lien position of Homeowner Association properties, but there are ways to avoid this conflict.The problem stems from the various lienholders of a property residing in one of these communities, according to a whitepaper released by LRES
on Wednesday. When an HOA forecloses on a property for unpaid association fees, the servicer faces significant risk of increased loss and even of losing its investor’s stake in the property, the report said. “Since no investor would consider this acceptable, servicers are left in need of a better method of managing the HOA lien process,” LRES stated.
“Homeowner associations are very important to the housing industry as a whole, which is why it is extremely important for servicers to have a good understanding of the risks to be mitigated and the requirements for doing so,” said Roger Beane, LRES founder and CEO. Read more: