Arizonans have spent the last three years digging out of a deep recession, and from what we’re seeing in the residential communities we manage, the worst could not be more than.

Expert data backs up this observation. A large portion of the state’s homeowners are underwater on their mortgages. The good news is that Arizona’s rate of negative equity has actually dropped because final year. The negative news: the drop is attributed to a lot more homeowners losing their houses to foreclosure.

By now, most everybody has heard the familiar guidance about what cash-strapped men and women should do when they find themselves in more than their heads with house mortgage payments or credit card bills. They’re encouraged to speak to the lender or credit card companies and attempt to work out a payment strategy, right?

But, most people do not recognize this counsel also holds correct for HOAs and community management businesses. In most cases, HOAs are eager to perform out payment alternatives with property owners, operating under the belief that some cash coming in is far better than no money at all.

HOAs are non-profit corporations that use earnings from homeowners’ dues to spend for everything from typical region upkeep and clubhouse operations to private streets and street lighting, based on the community and the terms laid out in its governing documents. The theory is that if absolutely everyone pays their designated share, the community is able to operate at a level that not only preserves appearances, but maintains home values as well.

Because the recession hit, HOA membership fees appear to fall final on the list of bills to spend when home owners are scrimping to pay mortgages and other necessities. Assessment delinquency rates that when hovered about 5 percent during the actual estate boom years have shot up to 15 percent to 20 percent. Like most businesses, HOAs are not structured to bear year after year of declining income.

If you are facing foreclosure on your home, or are struggling financially, here are two simple factors you can do. Very first, understand that as a member of an HOA, you are nevertheless responsible for paying your assessment fees, even if you move out of the property. You are obligated to make payments until the transfer of the home’s title.

Second, pick up the phone and call your HOA or community management company. Ask for help. Most HOAs and management firms have been empowered by their associations’ boards of directors to function out payment plans that can suit everybody.

The Great Recession has touched us all in some way – regardless of whether personally or by affecting an individual we know. If you give us a likelihood to aid, we all win.

We are not right here to judge. We’re all on the same team.