Foreclosure By Neighbor

IRVING, Texas (AP) - For thousands of Americans struggling through the recession, it's not the bank that's threatening to
foreclose, it's the homeowner association.

Condo and neighborhood associations may have written into the purchase agreement the right to foreclose on homes when dues aren't
paid.

It's a clause that caught one Texas couple who owe $1,800 in fees. Steve Pilat says, it was like their "landscaper was
foreclosing on the house." The couple were eventually able to work out a payment plan and save their home.

Foreclosure Listing Services says foreclosure attempts initiated by homeowner associations in 19 counties in Texas are up 30 percent
from two years ago.

Merit Property Management executive Andrew Schlegel defends the practice. He says he has "compassion for those folks." But he
says he also feels "for the rest of the homeowners who are paying their dues."