HOA’s struggle in face of foreclosures

"Home Owners Associations are feeling the effects of the housing bust as foreclosures and delinquent association payments put the squeeze on budgets. Homeowners feeling the squeeze of increased mortgage payments have stopped paying their association dues. In addition banks that are holding REO property in neighborhoods with association dues are notorious for lack of payment, causing the associations charged with keeping up public areas of housing developments to cut back on services."