Not So Neighborly Associations Foreclosing On Homes Due To Missed HOA Dues?

[babylonsister]

Not So Neighborly Associations Foreclosing On Homes

by Wade Goodwyn

June 29, 2010


Capt. Mike Clauer was serving in Iraq last year as company commander of an Army National Guard unit assigned to escort convoys. It was exceedingly dangerous work — explosive devices buried in the road were a constant threat to the lives of Clauer and his men.

He was halfway through his deployment when he got a bolt from the blue — a frantic phone call from his wife, May, back in Texas.

"She was bawling on the phone and was telling me that the HOA {homeowners association} had foreclosed on our house, and it was sold," he says. "And I couldn't believe that could even happen."

Clauer had a hard time understanding what his wife was saying. His $300,000 house was already completely paid for. Could it be possible that their home was foreclosed on and sold because his wife had missed two payments of their HOA dues?

In many states it is not difficult for an HOA to foreclose on a member's home for past dues even if the amount owed is just a few hundred dollars.

"I was really in a hurry trying to get home before my family was living on the streets," Clauer says.

Sold For A Steal

But by the time he got back to Texas, it was too late. The Clauers' four-bedroom, 3,500-square-foot home had been sold on the courthouse steps for just $3,500 — enough to cover outstanding HOA dues and legal costs.



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[tridim]

1. So the HOA stole their note? And it's legal?

Something isn't adding up here.

[babylonsister]

2. They failed to pay their HOA, and their property was confiscated.

I don't know how this can be legal, but according to this story, it happened.

[EmeraldCityGrl]

3. Another reason not to live in Texas.

The rights afforded to those in the military are denied to average citizens.
This situation is wrong on many levels.

[babylonsister]

4. Huh? This guy is IN the military. nt

[EmeraldCityGrl]

5. Because he's in the military

he is protected by the Servicemembers Civil Relief Act. I'm just saying EVERYONE should be protected from predatory organizations not just those in the military.


"As for Clauer, he's gone from fighting in Iraq to fighting his HOA in Texas. And if he weren't in the military, Clauer would have no legal recourse at this point.

But in a spasm of gratitude in 2003, Congress passed the Servicemembers Civil Relief Act, which was supposed to prevent nonjudicial foreclosures against military personnel fighting overseas."

[rzemanfl]

8. Before that there was the Soldiers and Sailors Civil Relief Act

of 1940. There may have been some false swearing in this case.

[tammywammy]

9. I live in Texas, I don't have an HOA

And also the Legislature is supposed to take this up next session.

[rzemanfl]

6. The kleptocracy strikes again. A decent attorney would have

paid the dues out of his own pocket and politely asked for reimbursement. Before you get all wild about that, I used to practice law, I would have done that and knew several others who would have done the same thing. If I hadn't had the money at the time I'd have called one of the "several others." This attitude may bear on why I haven't practiced law since 1996.

[Mimosa]

7. HOAs are full of crazy old people

I'm middle-aged, so don't think I'm being age-ist.

I was also in real-estate during the 1980s. The stories I could tell about HOAs. The set-up seems to attract control freaks with neuroses. And they're not practical. They waste money which is collected from homeowners. Sadly, many condo owners seem to have a 'renter mentality.' Even if they didn't the types who dominate HOAs tend to scheme to close out democratic decision making.

I've seen it, I live under one, and I hate them!

[ProgressiveProfessor]

10. One of my daughters is under one

They refused to release required records to her until she told them why and was labeled as a trouble maker for even asking.

[SunnySong]

11. HOA's are nightmares but this just as easily could have been local taxes

or a plumbers lein... here is a solution bring our troops back home so they can take care of their families.

[Greyhound]

12. TX is the model they want to apply to the nation.

& R

[Kat45]

13. How can a house be foreclosed upon when it's already paid for?

I don't understand. If it's paid for, there would no longer be a mortgage. Also, I'm not sure what a homeowner's association is. I know what a condo association is, but I'm getting the impression that these are houses, not condos. Help me out here--what exactly is a homeowners association?

[NotThisTime]

15. Similar to condo's... shared facilities such as a pool or walking paths or lawn mowing

Whatever the HOA was to cover, the wife didn't pay the fee, maybe she didn't see it come in, maybe who knows what, but because she didn't pay it, the HOA does have legal authority to sell the house for the dues owed on it. Doesn't make it right, I'd sue the hell out of them if I were this guy, but he'd need a really good lawyer........

[Odin2005]

14. HOAs = miniature Fascist fiefdoms.

[David Zephyr]

16. Something in this news story doesn't add up.

Homeowners Associations (HOA)provide a range of services from little to a lot depending on each association.

An HOA can provide everything in that particular community from paying the collective water bills, trash pick up, landscaping and tree trimming, insurance on all common structures, common walls, community swimming pools, legal counsel and more.

When one individual does not pay his/her HOA dues, it is akin to freeloading because it makes those who are paying have to pick up the slack for the one who foregoes paying what they have legally signed to due: pay their monthly dues.

In California, it is not easy to foreclose on a property owner for lack of HOA dues payment. First, the delinquent homeowner must be delinquent for at least 3 months and, then a "Lien Warning" letter is issued to the homeowner tellin them that they need to pay their back dues. After the "Lien Warning" letter is issued, there is still another period of time that the owner can call and make arrangements to make the payments. There is more, but if someone is just "two months late", it is very unlikely that a Judge would let the lien go forward without some sort of arrangements being worked out.

Honestly, as much as I feel for the soldier, I have a bad feeling that his wife's phone call to him left out a few other components to the how and why the property was taken.

I worked with a fellow whose house was foreclosed on him who believed his wife had been making the payments as she handled their finances. The money was gone fromt their account every month, but it wasn't going to the lender. She had a boyfriend and, as you can imagine, his story turned out to be an eyebrow raiser to all of us who worked with him. Very, very sad. She had a boyfriend, he wound up without a home and wrecked credit, too.