Posted on 11/20/2013 2:45:59 PM PST by Responsibility2nd
If I’ve learned anything from this site over the years, it’s that homeowners’ associations are evil and to be avoided. Sometimes you don’t have a choice, though: the home of your dreams or basic neighborhood amenities require it. And sometimes, as one Kentucky woman discovered, not joining the HOA means you can lose your house. If that sounds farfetched, well, a quick look through the Consumerist archives shows us that it’s happened before. In one horrific case, a man set his house on fire after a court awarded ownership of it to his HOA over a dispute regarding…unpaid dues and fines he racked up during a dispute over a fence.
This happened in Lexington, Kentucky. According to TV station LEX 18, the 75-year-old bought the house back in 2007, but works as a horse trainer and isn’t home all that much. Apparently she didn’t have anyone grabbing her mail: the HOA claims that they’ve sent her dozens of letters and legal summonses since 2009.
The HOA dues in her neighborhood? $48 per year. She owes a total of $288. The homeowner says that she just tossed the letters she received, assuming that the HOA was some kind of social organization that collected money from residents to access the pool or something. “I didn’t know it was mandatory to join this…homeowners’,” she says with some distaste. “I told them, I’m not joining.”
The good news, if there is any in this situation, is that the company that now owns her house did not immediately throw her out in the street. Also, she did get some of the proceeds: about $80,000. She paid $125,000 cash up front for the house in 2007, and that’s about what the house should have sold for today.
HOAs do often foreclose on abandoned homes, but there’s a difference between “owner is frequently away on business and not good about reading her mail” and “owner has completely abandoned her house.”
Interesting approach (attorneys buying up HOA liened homes), as long as the home loans are not under water. Our HOA had taken the approach of just filing liens and waiting the incalcitrant out - when the homes ultimately were sold they would collect at closing. Didn’t work out to well in the last few years with the housing collapse, homes went to Sheriff sale that didn’t cover the senior liens (1st mortgage in particular). While some on the Board thought not pursuing collection was being nice, it only delayed the inevitable and I imagine came as a shock when a resident sold and found a large amount off the top was going to the HOA, not them.
What finally got this owners attention was the rapid growth of the amount due as the attorney’s fees were added. That with the realization that ultimately they lose - so why delay any further the inevitable while racking up thousands more in fees.
I left a “community” over crazy HOA board folk.
Bought my own land where no one can tell me how I can or cannot prune my trees or sue me for not getting “permission” to grow bushes higher than 3 feet, etc.
A friend of mine has an HOA even though it’s hard to even see another house in the “community” from his $1.5 million home. He just started to put a pool in and they said “cease and desist” after the ground was dug and the liner put in.
He told them to GO F YOURSELF.
I agree with you in principle, however, sometimes things beyond your control change things. I bought forty acres of rural property with NO HOA, no restrictions. I made very sure of that when I purchased the property. When I divided the parcel into two pieces years later, without my consent, without my knowledge, the property deed now has restrictions and is part of an association. I sold half of it and will sell the other half if property values ever return here. I will now not ever live on it.
Yes, but the papers are lengthy and full of fine print. The agents just gloss over the details and say sign here, initial there, sign here, etc. English is not her first language, and she may not have understood about the association.
When I divided the parcel into two pieces years later, without my consent, without my knowledge, the property deed now has restrictions and is part of an association.
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Actually, no. That could not have happened.
The property owner did when he or she purchased a property burdened by covenants and conditions as part of the title.
Condominiums are a form of ownership in which the owners have full title to the living space they occupy and fractional title to the common elements. This form of title makes home ownership possible at much lower purchase prices than the typical single family dwelling.
The "membership" in the HOA is simply a consequence of being a part owner of the actual buildings and property. You have a fractional interest in the property and a fractional say in how the property is managed. You have an obligation to pay the dues and failure to pay constitutes a breach of the contract you have with the other owners.
Some communities of single family dwellings have an HOA to maintain streets, utilities, security or other matters. In these cases there would be common ownership of the streets, etc. The obligation to pay the dues would still be a contractual obligation with partners and the covenants would specify how payment can be assured. Failure of any particular owner would unfairly burden those who did pay with a disproportionately high fee.
I would never buy into the latter type situation. I am just selling a condominium and am glad to be rid of it.
I have no problem with associations formed by free individuals to enable them to buy better homes than they would otherwise own.
I do see a growing problem with the fact that urban renewal programs create similar covenants and restrictions on the title to real residential property and that there is little way for anyone to change or eliminate such restrictions. At least a condominium association could dissolve itself, sell the property, and split the proceeds among the owners, thus rendering any association agreements void. (This would seldom be practical and is probably subject to state laws regarding the management of condominiums.)
I am totally on your side. I can see where it could be a pain, but mine is really easy. I walked out of my home on Veteran’s day and American flags were put out on every lawn. Heck, I don’t even know when they did it. The only complaint I have is that both gates have nice security guards, but the would let almost anybody in if they have even a morsel of a convincing story on the need to get into the community.
The HOA dues in her neighborhood? $48 per year. She owes a total of $288. The
homeowner says that she just tossed the letters she received, assuming that the
HOA was some kind of social organization that collected money from residents to
access the pool or something. “I didn’t know it was mandatory to join this…homeowners’,
“she says with some distaste. “I told them, I’m not joining.”
*******
I agree that you should find out what all liabilities you have and just not ignore
letters. She told them she wasn’t joining not realizing the consequences of her
actions. Tough lessen.
The OTHER side living with no HOA is that the neighborhood winds up looking like a shantytown. I’ve seen it happen in neighborhoods of 750K homes and 100K homes.
For people who like them, appreciate their convenience, don't really spend a lot of time at home, are regimented, or whatever, HOAs are great.
But you are so right -- when's the last time you saw a new housing development go in that wasn't HOA?
This generally means that homeowners are hostage to the HOA in how they use their properties. If you buy an old beat-up car and want to use your garage to restore it, a great and worthy hobby project, and leave your other car in the driveway, forget it. If you want to install a unique garden in your front yard and replace some windows with French doors, your HOA "neighbors" will probably slam you with a thumbs down. IF you want to put a portable basketball hoop in your driveway for your kids for a few months ... nooooope. Build your little girl a treefort? Hell no!!!
HOAs crush creativity, IMO, and the only reason so many of them even exist is because infinitely nattering levels of regulation and oversight on building make it insanely expensive for people to live in one-offs each in its own individual stake of acreage, or fraction thereof -- like old-fashioned neighborhoods across America, remember?
Over-legislation of property and housing development pretty much makes HOA living an entry-level requirement, if you're urban. It's really high in Southern California.
“What amazes me is the HOA’s action when the amount, while ignored by the owner, was not really very much when the HOA foreclosed. “
They hired someone to find her and sent certified notices to her. The house was vacant. Additionally, she threw their notices in the garbage.
“She paid cash, so maybe there weren’t any forms.”
Even if she did, the real estate agent and/or closing attorney would have provided the documents.
“Rather than turn it over to the HOA he burned it down”
Sounds like arson. How much time did he do?
“Only morons live with one in my opinion.”
Guess I was a moron at one time!
“It’s hard to feel sorry for people this stupid.”
Agreed.
Courts tend to be very wary before kicking someone out of their real estate. Due process is very important. She could have satisfied her debt (which included attorney fees if the HOA covenants were properly drafted) and kept her house.
Right, blame the 75 year old immigrant German victim. You are an a-hole!
“When you “buy” a house that is under a HOA, you aren’t owning the house - you’re leasing it for whatever amounts to the HOA’s whim”
Not all HOA’s are equal, ... who runs it, how solvent it is, and percentage of homes in assessment arrears are questions any buyer should ask the real estate agent. Some HOAs really work hard to make the neighborhood common areas look great, thus maintaining/enhancing property values. Funny how some people might overlook the benefits they/ their property derive, try to avoid their obligations, and complain. Just like Democrats! Those that don’t like an HOA, then don’t buy into one.
Then there are the stories about non-HOA neighborhoods where the next door neighbor trains fighting dogs in the middle of the night, or runs a chain sharpening business early Sunday morning.
Timmy’s on a committee, how quaint. You can shove your socialist gated community up your poop-chute.
Dunno, just read the story.
Exactly. I bought my current home cash 3 months ago, which is in an HOA. There were no surprises, and our HOA is quite low-key about things. They take care of the common areas, the lake, and so on. I would have preferred to not be in an HOA, but I just couldn't find the sort of property I wanted without it.
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