Pacific Association Collections - PAC
When HUD (the U.S. Government) forecloses on owners who default on FHA insured loans, HUD takes ownership of the property. Unfortunately for associations, the property goes into HUD's Real Estate Owned (REO) Department and the property is usually left unoccupied and unmaintained for a long period of time. Squatters often take over the property, windows are broken and other damage takes place. When an association makes demand on HUD to maintain the property, they are usually ignored. Hearings and fines are meaningless because associations have no jurisdiction over the federal government. A form letter is the standard response given by HUD to association demands. HUD has adopted a policy of allowing the properties to fall into ruin and then selling them "as-is."
Pacific Association Collections