Rights Radio Self Help Hour: How to Lose Your Home for $400 or Less

How a missed $400 homeowners association dues payment escalated into foreclosure and eviction in Texas. Homeowners association rights and wrongs with authors Dr. Joyce Starr and Dr. David Goldenberg.

A homeowner based in Texas missed a $400 payment to his homeowners association – which soon mushroomed into an additional $3000/plus in legal fees and interest, foreclosure and finally, eviction. Dr. David Goldenberg, author of one of the three books in our Homeowner Rights Defense Kit (available on StarrPublications.com), joined me for a lively discussion on February 12, 2009:

How to avoid setting off a homeowners association or condo association foreclosure avalanche when you’re standing in
front of it.

Here’s the email I received from the homeowner:

“Hi, I am writing to you about the my homeowners association. I have been working out of the country or out of the city for most of the year last year. I owed the home owners association $400 and by the time I realized their was a problem, they had turned it over to their attorneys, and instead of owing $400 the bill was several thousand dollars. I had been in contact with their attorneys less than two weeks ago trying to negotiate a fair settlement. I had to go back out of town, and when I returned Wednesday night I had an eviction notice on my door. The HOA had foreclosed on my home, sold it in an auction, and now I am being evicted from my home over an $400 original bill. I am not behind on my house payments, but now I will be evicted from my home because their is no oversight on home owners associations by the government to keep HOAs from abusing people. Please address this issue, because I understand that about 30 others were done the same way as me.”

Dr. Goldenberg argued that the owner:

1) Had a legal responsibility to read and understand his obligations as set forth in  his homeowner association documents;

2) Should have alerted the HOA that he would be traveling and arrange for some form of ongoing communications;

3 Arranged automatic payments from his bank or immediately paid the past due amount before it escalated out of control.

He reminded us about the Admiral who failed to pay his Association dues because he had been kidnapped and was being held captive! Unsympathetic judges ruled against the unlucky Admiral, and he lost his home.

An HOA or condo  has a legal responsibility to demand delinquent payments in writing within a specific time frame, in order to prevent economic collapse. However, I pointed out that while Associations are justified in leveling fines for delinquent payments, excessive legal fees make it impossible for owners to catch up. The owner in question would have gladly paid the $400 and even the fine. He could not pay $3000 in legal fees and interest. As a result, he was foreclosed and evicted. Dr. Goldenberg agreed.

A tort reform group based in Texas offers excellent suggestions for mediation that I will include in a subsequent post on this topic. (The question is: who will pay for the mediation, and can it be conducted in time?)

Purchase the Homeowner Rights Defense Kit

Listen to the program below. Share your ideas on how to solve this insidious problem by sending your comments.

Dr. Joyce Starr

Audio clip: Adobe Flash Player (version 9 or above) is required to play this audio clip. Download the latest version here. You also need to have JavaScript enabled in your browser.

Breaking News: Florida HOA Survey Demolishes Anti-Reform Arguments

Florida HOA Survey Demolishes Anti-Reform Arguments: You heard it first on Rights Radio.com.

Midnight tonight is a critical time. An important survey of homeowners in Florida HOAs goes on-line.

The survey asked Florida HOA homeowners and non-owners with different roles in those organizations if they were in favor of or opposed to each of 14 proposed reforms to Florida Statute 720 which governs those associations. The well-known Cyber Citizens for Justice, Inc. [CCFJ] sponsored that study.

How to Recall Your Board

It’s an important study for several reasons. It’s the first reliable one on the subject with over 1,000 valid responses from all parts of the state. It provides broad and deep coverage of the issues and presents its findings clearly in nontechnical terms.   

Perhaps most importantly, CCFJ’s report demolishes the anti-reform arguments so often raised in the past. No one can ever again truthfully assert that reforms aren’t wanted. Nor can opponents of reform honestly claim that HOA owners aren’t willing to pay for an independent agency with enforcement powers to regulate HOAs in Florida. Nor can anyone say with a straight face that only a few vocal malcontents in South Florida want some reforms but everyone else is satisfied with the way their board of directors runs their HOA. This study’s rigorous statistical analysis proved that there’s less the one chance in a billion that any of those claims is correct.

Last week Jan Bergemann, President of CCFJ, shared some highlights from that survey with our Rights Radio audience. (You heard it first on Rights Radio!)

What isn’t well known is that Dr. David Goldenberg, author of one of our best selling books – Creating Home Owner & Condo Association Documents and the author of our best selling special report “Ten Steps to Recall Your Board” – analyzed the data from that survey and wrote the report which appears on-line and is available in hard copy from CCFJ.

Dave’s analysis uncovered a number of interesting facts in addition to those mentioned above or by Jan on last week’s program. For instance, people from all over Florida were strongly in favor of every proposed reform by 75% to 96%! Naturally this result varied by the specific reform and across five sets of respondent traits, namely: Interest or role in the HOA, gender, membership or non-membership in CCFJ, region and whether or not the respondent made a comment or identified which reform was most important to him/her.

Two remarkable outcomes of Dave’s analysis are solid proof that: homeowners views on reform differ significantly from those of their boards of directors and that the directors have a strong and consistent bias against reform. The latter point means that conclusions drawn from prior studies by lobbying groups such as CAI [representing Community Association Managers], and CALL – CAN [representing law firms serving HOA boards] could be open to question on several counts – including the use of undersized samples.

You owe it to yourself to read this important study.

You can access the complete survey here and Jan’s comments on the survey here.

To Your Empowerment!

Dr. Joyce Starr