First Time I've Seen Foreclosure List at Check In - Hokulani

[WaikikiFirst]

[post deleted: please be courteous]

 

[WaikikiFirst]

[post deleted: please be courteous]

 

[WaikikiFirst]

[post deleted: please be courteous]

 

[letsgobobby]

so what does happen to owners in good standing and their MFs if there are a large number of owners in default, not current on MFs?

 

[davidvel]

so what does happen to owners in good standing and their MFs if there are a large number of owners in default, not current on MFs?

They divide the losses among them and pay.

 

[dougp26364]

No, not really because it falls back onto the HOA. The developers won't be responsible for covering the MFs. Now, the developers, in this case HGV can resell the property at retail prices. HGVC has waived almost 100% of the ROFR which they control since 2020. Now it is a different story for the SC properties because ROFR is controlled by Strand who is the developer. Strand has been very aggressive on ROFR, thus the resale prices have stayed very high for those properties.

I think this depends on who holds the mortgage. If the developer holds the mortgage, I would imagine there would be less impact to the HOA as there is likely agreement between the developer and HOA for payment of MF’s. I recall several years ago MF’s reflecting a developer subsidy that reduced the total MF paid by owners. This typically lasted until the resort was fully developed. If the deeds are bundled and sold as a “junk” bonds, then the resulting foreclosures are more likely to affect the HOA budget.

So far I haven’t seen a list of foreclosures at any resort, but I haven’t really looked either. I’ll be looking this weekend. My bet is there is a local law that requires a public posting prior to foreclosure. I know I’ve had to comply with public notice laws when settling an estate. At that time it needed to be posted in a local newspaper. Since newspapers have been going the way of the dinosaur, maybe this location is doing it this way.

 

[GT75]

I recall several years ago MF’s reflecting a developer subsidy that reduced the total MF paid by owners.

Yes, that I know was true for Kingsland several years ago when it was under development. I haven't looked at my other budget reports.

I did look through several budget reports looking for a line item for delinquent owner's MFs. I didn't see one. I don't know if it is covered under something else such as admin fee or maybe contra maintenance fee revenue.

 

[letsgobobby]

They divide the losses among them and pay.

so for the other owners a completed foreclosure is much better than a delinquent deed

 

[davidvel]

so for the other owners a completed foreclosure is much better than a delinquent deed

Depends who ends up with it which may be determined by the CC&Rs. If the HOA gets it and they can't sell it, then everyone still makes up the difference. If developer gets it then yes they should pay the MFs.