Product details

This case can be used to illustrate problems that arise when homeowners get into financial difficulties and have to make hard choices on which monthly bills to pay and which to ignore. Little known to many homeowners is that failure to pay mandatory Homeowner Association dues can lead to foreclosure on the family home. A cruel reality sets in when the family home is sold at a foreclosure auction. The new deed holder can extract rents from the property and use slow-moving court procedures to forestall a primary lienholder's foreclosure, thus increasing the time rent can be collected on the property. The case is designed for discussion on the topics of financial literacy and basic real estate transactions. These issues can be covered in one class session and requires one hour of preparation time from the students. This case can stand alone, or it may be used in conjunction with a related case - 'Taking Advantage of Homeowners Association Foreclosures: Investors or Predators?' - by the same authors.