and Video Courtesy of
Channel 9 -- ABC
-- Daytona Beach
Published September 23, 2009
COUNTY, Fla. -- An Orange County homeowners
association (HOA) is taking some drastic measures to make up
its financial shortfall. The HOA at Stoneybrook East and West is
tacking on a new $4,000 fee for foreclosed homes sold in the
homeowners think it'll make their houses even harder to sell because
of the bad real estate market.
foreclosure after another has left Sara Au's Stoneybrook East street
lifeless. She wants back what she bought into several years ago.
just want good neighbors to move in, good people that are living and
playing with our kids," she said.
a new fee might slow down that process. The community's HOA is now
charging home-buyers who purchase a home that has sat in foreclosure
for one year or more $4,000 to close the deal.
are dozens of foreclosures
in her neighborhood. The average foreclosed house is selling at
roughly $200,000, but realtor Ron Randolph says the fee could a make
or break a sale.
requires someone to come up with cash at closing. Single biggest
difficulty that purchasers are having cash to close the deal,"
Randolph also acknowledges the position HOAs are in. The money has
to come from somewhere, either from current residents or future
in Stoneybrook East are already paying an extra $500 in HOA dues to
make up for foreclosures. That extra $4,000 that the home-buyer now
has to pay is saving the current homeowner from another special
Gustino represents Stoneybrook's HOA and he says there has always
been a $1,000 fee, but they upped it $3,000 to recoup losses and get
the bank's attention.
to spur the banks to complete foreclosures in a reasonable period of
time. Properties neglected that are a blight to the community bring
in families who pay dues," Gustino said.
said most people are understanding and doesn't think Stoneybrook has
lost out to other neighborhoods where closing doesn't cost another
$4,000. He says the $4,000 additional fee goes to the community
coffer and will pay for maintenance of common areas, landscaping,
private streets and guarded gates.
James A. Gustino is not only representing STONEYBROOK WEST MASTER ASSOCIATION, INC.
as the association attorney, he is as well a member of the board of