When we searched for a bank REO, a concern was the home owners' association (HOA) being in default. The HOA basically covers the exterior common areas as well as security for guards. I looked this up on the internet and really couldn't find any information.
One reason why this HOA was a concern is lenders were not lending on many condo and planned communities that had HOA in default or arrears. The banks did some kind of preliminary report that showed how many condos are owner occupied vs rented as well as how many properties had notice of defaults(NODs) filed or already bank owned (REO). Most of this information is not readily available online, so you don't learn about this until after an offer is made.
We did visit some condos and master planned communities and you could physically see the maintenance wasn't being done. I just found this video and this is what inspired me to revisit this issue on HOAs.
Where did the Billions in Bank Bailouts Go? - Sand, Dirt, Fines & Ghost towns
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