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Homeowners Assoc. Sells Woman's House Over $420 Fee

Discussion in 'BBS Hangout' started by Jeff, Apr 28, 2005.

  1. Jeff

    Jeff Clutch Crew

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    This is just sickening.

    Homeowners association sells woman's house
    Group says she failed to pay fee; critics say incident is an example of excessive power
    By ZEKE MINAYA
    Copyright 2005 Houston Chronicle

    Pamela Bernhardt was close to completing renovations on a house she owned and hoped to sell. She had installed a new roof, new granite tops in the kitchen and new tiles in the bathroom.

    Earlier this month, she arrived at the house on the 14200 block of Swallowfield in southwest Houston and found a small, yellow note stuck to the front door.

    The handwritten note said that the house had been sold at a foreclosure sale seven months earlier. The local homeowners association had sold the house, valued at about $250,000, saying Bernhardt failed to pay a $420 assessment fee.

    "It was so devastating," Bernhardt said. "I was just stunned."

    Bernhardt's situation was another example of the excessive power of homeowners associations and the need to reform the use of foreclosure sales to collect fees, state leaders and activists said Wednesday.

    Suing to get house back

    A lawyer for the Briarhills Homeowners Association, which foreclosed on the house, said sufficient protection is on the books for homeowners and that Bernhardt was given ample opportunities to pay the debt.

    Bernhardt has filed suit, claiming she never received notices alerting her to the delinquent fees. She is asking for her house back.

    "I was never sent any notices," the 52-year-old real estate agent said. "I would have paid the $420, before spending about $48,000 on renovations."

    Terry Sears, a lawyer for Briarhills, said notices were sent to Bernhardt by certified mail and that after the sale she had 180 days to buy her home back.

    "She could have bought her home back for the amount of the past due assessment," he said. "It's unfortunate she did not respond to any of the notices."

    Had the dispute been mediated in court, Bernhardt would not have lost her home, said state Sen. Jon Lindsay. Some foreclosures can be enacted without going before a judge, Lindsay said.

    "I want to see judicial foreclosures," said Lindsay, R-Houston. "A judge should be looking over the shoulder of this process."

    Lindsay said he would address the concern during the current session. The deadline for introducing new bills has passed, but he could still amend a pre-existing proposal, Lindsay said.

    Practice is common

    The push to curtail homeowners associations gained momentum after 83-year-old widow Wenonah Blevins lost her Houston home in 2001 when she failed to pay $814.50 in association dues.

    Blevins eventually got her home back, and public outrage galvanized state leaders to install protections that included the 180-day period in which a property owner could repurchase their home after a foreclosure.

    But more needs to be done, according to Robert A. Axelrad, Bernhardt's lawyer.

    "There are no safeguards with non-judicial foreclosures," he said. "You are talking about such a relatively small amount of money. The question is whether people should be allowed to take away people's homes without the safeguard associated with the judicial process."

    The practice of homeowners associations threatening foreclosure has become much too common, said David Kahne, a lawyer who has represented homeowners against foreclosure. He estimates that 1,000 lawsuits are filed each year in Harris County by homeowners associations seeking foreclosures.


    That's like Best Buy taking your house when you don't pay your credit card bill for that printer you got. How is the homeowners association allowed to keep $250,000 from the sale of a home when the person only owes $420???
     
  2. MadMax

    MadMax Member

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    that's just ridiculous.
     
  3. RocketMan Tex

    RocketMan Tex Member

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    Despicable. I am very happy that my neighborhood has a voluntary Civic Club rather than a mandatory Homeowners Association.
     
  4. NJRocket

    NJRocket Member

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    can she hit?
     
  5. DaDakota

    DaDakota Balance wins
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    She should have paid the $420...

    ;)

    If she got certified mails, she had to know...sounds like she will get it back, but it will cost her.

    Got to pay dem bills.

    DD
     
  6. MadMax

    MadMax Member

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    Come on. No one other than homeowers' associations are this unreasonable. No one. I represent banks. I've foreclosed on commercial property many times....where there are less concerns than foreclosing on someone's home. I've never done work for a bank that's been like, "yeah...let's just go foreclose for $420!!" Hell, the attorneys' fees alone are probably 10x that. There is reasonable.....and then there's this. These need to be done judicially. No question about it.
     
  7. 111chase111

    111chase111 Member

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    What I'm wondering is who runs these homeowner associations? It's just people who live in the neighborhood, right? So, what possess them to do such evil things when, under other circumstances, they would be just as appalled as everyone else? Or, are these associations really controlled by lawyers who are fishing for business?

    Remember the thread "Are Corporations Evil?" Maybe we should start a thread called "Are Homeownder's Associations evil?"
     
  8. MadMax

    MadMax Member

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    true..there are lawyers who make money off this, no doubt. but there are also homeowners who are neighbors...things get more personal.
     
  9. bnb

    bnb Member

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    Wouldn't the HOA have some sort of duty of care to sell it at 'market???'

    Maybe she thought it was a different kind of 4:20 assessment and decided not to partake?

    And you'd think that she might have wondered about that fixer-upper for sale in her neighbourhood at $420 -- being a real-esate agent and all??

    There's something not right here...
     
  10. pirc1

    pirc1 Member

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    These are the type of things that could lead to someone go on a gun rampage. How pathetic.:mad:
     
  11. MadMax

    MadMax Member

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    Yes they have a duty to get market value or something close to make the foreclosure sale appear "commercially reasonable."

    But they didn't sell the house for $420...that's just all they kept from the proceeds of the sale, plus their court costs and attorneys' fees. They can't hold on to the balance.
     
  12. A-Train

    A-Train Member

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    What exactly does a homeowner's association do? I don't think I've ever heard anybody say a positive thing about a homeowner's association. They seem to just take your money and give you protection that you don't really want or need...sounds kind of like the mob. :)
     
  13. MadMax

    MadMax Member

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    depends...they CAN be effective and reasonable. in my neighborhood, they're fine. they take care of garbage pickup...recycling...our community pool and playground...and the landscaping for common areas. that's all good stuff...and it's stuff i knew about when i bought the house, so i can't argue that it took me by surprise. it helps keep up the value of my neighborhood. but, as with anything, it can be abused.
     
  14. tigermission1

    tigermission1 Member

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    Yet more reason to maintian friendly relations with thy neighbor.

    Which reminds me...let me go say hi to my next-door neighbor, he is washing his Escalade...be right back!;)
     
  15. Harrisment

    Harrisment Member

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    What area is that if you don't mind saying? We're looking to move soon and it seems many subdivisions have these mandatory annual fees.
     
  16. SamCassell

    SamCassell Member

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    From personal experience, homeowner's associations are evil. You don't need to pay dues every month to have people enforce an arbitrary set of rules regarding how long your grass can be or whether you can have a basketball hoop in your driveway or what sort of improvements you can make to your property. Seriously, I just don't see the need.
     
  17. Dr of Dunk

    Dr of Dunk Clutch Crew

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    Ultimately yes, but initially, no. In most new communities a management company runs the HOA - the homeowners don't take over until the community is more established.
     
  18. Supermac34

    Supermac34 President, Von Wafer Fan Club

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    I disagree with you a little bit. I'm not a big fan of HOAs, but it is the cost of having no zoning. They are a necessary evil in neighborhoods. If they didn't have these "arbitrary" rules, your investment in your home could be greatly damaged by anybody living on your street that didn't want to keep their house up.

    The reason that the rules seem so specific and arbitrary is that they need to be to enforce them. Everybody wants everybody in their neighborhood to keep their grass mowed. Well, you can't write a rule that says: You must keep your grass mowed. You have to write a specific rule: Grass must be no longer than 3 inches...or whatever. That way, it can be enforced and there is no grey area to if you grass is considered mowed or not. Someone that grew up in the country with pastures might think 6 inches is "mowed" and someone from the city would disagree...so you have to have specific rules.

    It also keep people from opening businesses in your neighborhood...you don't want to live next door to a guy with a restaurant in his house...it keeps people from raising livestock. You don't want a bunch of smelly animals on the other side of the fence. It is a necessary evil.

    I DO think they overstep their powers though. They should NEVER be allowed to sell your house to pay the fees. And if they are allowed it MUST go through court.

    I think a better solution would be that the HOA can put a lein on your home for the amount that you owe and that they can also send your debt to a credit collector. Heck..even make it to where they can cut off your power and water until you pay...just don't let them sell your home out from under you.
     
  19. KaiSeR SoZe

    KaiSeR SoZe Member

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    homeowner assoc. are pansies..they leave notes for everything..say it to my face biatch!
     
  20. RocketMan Tex

    RocketMan Tex Member

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    Westbury
     

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