Condo Fees, Condo Assessments: HOA/Condo Rules and Your Rights

Condo and HOA rules on homeowners association fees & homeowners association assessments. Who controls condo/HOA financial decisions?

I receive weekly questions from condo association and HOA members regarding condo rules, condo fees and condo assessments.

These questions are answered in detail in our Homeowners Association Defense Kit or in specific special reports offered on StarrPublications.com. Answers may differ depending on your condo association documents or HOA documents, your state and of course, your personal situation.

The problem arises when condo association or HOA members are already involved in a bitter dispute with their condo board or HOA board over failure to pay condo fees or condo assessments – and when a simple black and white answer will not suffice.

At this point, we typically move into a one-hour consultation. In 99 percent of the cases, an hour is sufficient to address – and often put an end to – the problem.

Here is a short list of common questions on HOA/condo association rules and HOA/condo association policies on fees and assessments. You can find the answers here:

1. Condo Associations: How are condo associations and HOAs established and managed?
2. Condo Rules: Who approves condo association financial decisions?
3. Condo Association and HOA Fees and Assessments: What are condo and HOA policies on fees and assessments?
4. Condo Fees: Are condo boards and HOA boards required to collect condo fees when the amount is in dispute?
5. Condo Budgets: What are the budget responsibilities of the condo Association or HOA?

To your condo rights and HOA rights.

Learn how to protect your homeowner rights here.

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

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