Maui Owie

From The Maui News we hear of the pressures on condo associations as more owners fall behind on their dues. I'm not clear on what recourse associations have there for collecting, in many mainland states associations actually can foreclose units themselves ahead of the banks that hold the mortgage (giving banks an incentive to pay the fees). Here they resorted to drier methods with a tenant who's still squatting after the bank foreclosed:

Ron Wilson's condo was foreclosed and sold at auction, although he is continuing to live in the unit until Bank of America tells him to move out. After he stopped paying fees, his association warned that it would cut off his water if he didn't settle the debt. Wilson filled buckets and tubs with water, and his service was turned off Sunday morning. "It's a good lesson in conservation," he said Monday. "I realized how much water you waste and how much you really need." He said he "could hold out all summer," but since BofA will have to file notice of its takeover within a few days, the bills will then be the responsibility of the bank, which should answer at least part of the Kanani association's problems.

These fees will motivate banks to unload condo properties more quickly than houses, so perhaps there will be some REO bargains in Maui soon?

The North County Times notes a sharp increase in foreclosure auction notices coming from BofA, likely to Countrywide customers. Southwest Riverside county (just northeast of San Diego) is catching this particularly hard, perhaps in an effort to catch up with the rest of Riverside county.

More oil stat

From Dana Olick at CNBC

The new foreclosure wave is here.

Yes, banks are ramping up loan modifications and ramping up short sales and ramping up deeds in lieu of foreclosure, but the plain fact is that as the systems are oiled, the loans are moving through faster, and the pig in the python is showing its face.

As the Little Prince pointed out, it's probably an elephant in there, not a pig.

wonder if they've seen Brazil

Haste makes waste, or at least for sloppiness. From Tampa Bay comes the story of a foreclosure gone awry:

Charlie and Maria Cardoso are among the millions of Americans who have experienced the misery and embarrassment that come with home foreclosure.

Just one problem: The Massachusetts couple paid for their future retirement home in Spring Hill with cash in 2005, five years before agents for Bank of America seized the house, removed belongings and changed the locks on the doors, according to a lawsuit the couple have filed in federal court.

The bank had an incorrect address on foreclosure documents — the house it meant to seize is across the street and about 10 doors down.

Look for stories like this to become increasingly common as banks try to clear the incredible backlog of foreclosures.