Several of these HOA's are in financial trouble as some owners have not paid their fees. It's hard for the HOA to collect since usually the homeowner is upside down on the loan.
Condo prices in Los Angeles and San Francisco fell once again in June, and appear to be weakening further, according to Standard & Poor's.
The S&P/Case-Shiller index tracks condo prices in five of the nation's largest cities. The latest index showed L.A. prices decreased 0.5% in June from the prior month with prices in San Francisco down 0.8%.
"This is occurring during a time of anticipated seasonal strength; and the data look worse if you view the markets over the prior year or so," S&P said on its HousingViews blog.
Condo prices in second-largest city in the country have declined in 11 of the last 12 reported months, pushing the L.A. index down 7.4% in June from a year earlier to a new crisis low, according to S&P.
Prices in San Francisco fell in nine of those 12 months and the index is down 6.8% from a year earlier.
Link Here"On average these market prices are back to their mid-2003 levels," S&P analysts said. "While not as weak as Chicago, these two markets appear to be weakening."