In Florida we see increased homeowners who can not keep up with the association dues. May be the case in other states as well. I in a few cases have to deal with working with the HOA and Board of Directors to accept settlements. In a few cases the HOA declined the settlement amount and elected to let the unit go back to the bank????? What are they thinking? Let's say the homeowner owes $10,000 in outstanding HOA's and Wells Fargo or whoever offers $8000. Why would the HOA turn down the offer? I really don't understand why the board (other homeowners who own units) would want a foreclosure in the community. I also have noticed that the fees added to the outstanding balance jump up once they are aware that the bank wants to pay up. Go figure. HOA Board of Directors, you should start working with these short sales or you may find yourself with more foreclosures down the road.
On a separate note, future buyers and financing look at the amount of foreclosures and amount of deliquent owners. My point is be proactive in your approach to collect even if it means taking a settlement.