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?