Limiting Rentals in Subdivision (mortgage, lender, foreclosures)

[mahenley]

Hello,

With all the foreclosures going on and the banks dumping houses right and left is there a way to limit the amount of homes being rented? Can this be done through an HOA? Of course in our subdivision we want more home owners than renters.

In the beginning the builder tried to limit the amount of investors who could purchase in a new development.

Thanks.

[fcorrales80]

Yes I believe there are some HOA's that forbid rental properties in the neighborhood. Lenders also can have rules against purchasing homes for rental property and I believe that many will now enforce those rules after this mess.

[altus2006]

Originally Posted by fcorrales80

Yes I believe there are some HOA's that forbid rental properties in the neighborhood. Lenders also can have rules against purchasing homes for rental property and I believe that many will now enforce those rules after this mess.

Captain Bill has posts describing how investors are buying property and I believe he is also the one that has described how mortgage companies are selling their REO's in bundles to investors.

This is a real problem and I don't believe HOA demands or our wishes for rental free subdivisions are being adhered to now. The main problem for the banks is to get the repos off their books ASAP.

altus2006

[azjack]

". . . is there a way to limit the amount of homes being rented? Can this be done through an HOA? Of course in our subdivision we want more home owners than renters."

No.

Retroactively changing the CCRs would likely be a futile effort. It would require significant legal work and after that, I doubt that you would ever achieve a quorum to change the language. Basically, you are talking about retroactively removing other people's property rights, the right to lease out their property. That is not easy, nor should it be.

CCRs established in the past can limit almost anything, but that is because everyone who purchased had to affirmatively accept these restrictions if they desired to purchase.