By JIM WASSERMAN, Associated Press Writer
CHULA VISTA, Calif. - As millions of Americans have moved into the nation's 260,000 privately run neighborhoods, they've been hit by rules on pets and door colors and hemmed by restraints on landscaping. If they're late with their dues to maintain common areas, sometimes for as little as $120, the associations, backed by a network of property managers and attorneys, can foreclose on their homes.
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Despite a growing backlash, lawmakers throughout the nation have failed to make major changes. California, however, stands on the verge of banning foreclosure entirely in many instances, making nonjudicial foreclosure more difficult and rolling back the fee system that makes foreclosure lucrative to a small cadre of lawyers.
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Like California, associations in Florida, Texas, Arizona and Nevada all have authority to ultimately collect their members' unpaid assessments by selling their homes. Combined, the five states have more than half the nation's supply of association-governed housing.
In Las Vegas, Judi Burns lost her $130,000 home when a judge upheld her association's March 2000 foreclosure sale over unpaid dues of $300. In Arizona, Evelyn Lyles nearly lost her home over $393 in unpaid monthly assessments. An anonymous donor paid when media accounts of the pending foreclosure described her battle with breast cancer.
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