HOAs put homes with late feed up auction in TX

Next time you wanna kvetch about OUR HOA- be glad you don't live in Texas!

HOAs put homes with late dues up on auction block


HOA FORECLOSURES





May 6th, 2009
WYLIE - The foreclosure listing service says foreclosures are up 25 percent in North Texas, and nearly 1,000 homes this year have been foreclosed on by homeowners associations.


Often, homeowners don't even realize their house is on the auction block.
News 8 tracked down some surprised owners of a Wylie home that was up on the auction block.
"I just couldn't believe it," said Jaqueline Rinaldi, who said she had no idea her home was up for auction.
Rinaldi is now in danger of losing her home due to more than $1,000 in delinquent HOA dues.
"Somebody can come and take your home away from you because you owe $1,000 worth of homeowners dues," said Chuck Sharp. "That's just ridiculous."
So far this year, nearly 1,000 homes in North Texas have been foreclosed on by HOAs, which is up three percent from last year. The Texas Legislature is now considering stripping HOAs of their foreclosure power.
However, HOAs defend it as a needed tool to collect unpaid fees.
"Those members of the association who do pay their assessments and do care for their community are going to end up paying more, and I think everybody should pay their fair share," said Judd Austin, a HOA representative.
Actual sales from HOA foreclosures are rare since homeowners get multiple chances to clear the debt and reclaim the home.
"Anybody who bids on a HOA lien is just wasting their time and money," said Jim Johnson, a home buyer.

 

i LOVE ppl who don't follow the rules and then whine when they are punished for it...

 

Yeah - but FORECLOSURE? Waterboarding, maybe. Garnishing wages, perhaps. A scarlett letter for certain. But snatch the house away?

 

That is an example of a HOA losing touch with the community.

 

it's extreme, i agree.

 

Or how about all the finished spec homes that were bulldozed by the bank who now owned them as it would be to expensive to finish building out the development?

 

I wonder if there is a reason the HOA did not just take the resident to small claims court?

 

The difference is that it would be using the existing legal system for collecting a debt. A civil court is able to garnish wages and even, in some cases, affect tax refunds.

The intent is to allow the existing legal system to handle this vice the HOA taking action on their own. Putting a lien or auctioning someone's house should be the absolute last resort.

Unless there is a reason the Texas HOA does not want a judge to review the contracts/procedures of course.

 

I don't know if it would go as far as foreclosure but I know of a home in Lansdowne that has a lien on it from the HOA because of an issue with the HOA rules. All dues are paid.

 

I'm thinking that homeowners don't think HOA dues are as important as HOA employees do. I'm not saying it's right, just that I don't think some people take them seriously.

 

Easy guys, try some decaf. I was just asking a question. No need for the attitudes.

 

Wait. If my mortgage is paid up and current, the HOA doesn't have standing to foreclose.

 

Yes, compare the cost to obtain a lien and foreclose (the cost to the community, strip the homeowner of their dignity, render them homeless), compared to the cost of a judgement to garnish wages.

 

Not quite correct. Paying your HOA fees is attached to your deed and mortgage. If you don't pay your HOA fees, you can be foreclosed upon, regardless of whether your mortgage is paid on time.

 

Any organization that auctions someone's home for $1,000 in late fees is abusing their power. Period.
It doesn't take a genius to see the punishment does not fit the crime on this one.