Liens & foreclosure

I have reciently joined the Board as V.P.The previous board has decied to persue a lien & foreclosure against a homeowner here is the situation; Home X was purchased by owners 1 & 2. The board didn't notify home X they were behind until 12 months had passed and then they only notified ower # 1.They went to mediation and owner 1 contracted with them a 6 month repayment agreement owner 2 didn't sign the agreement at the end of the agreement the board wanted more money even though owner #1 had completely complied with all of there requests.Owner #1 had decided that they had enough and choose not to enter the new agreementthey didn't notify owner #2. They sent the bill to collections Owner # 2 came to me and asked what to do so I asked the treasurer who said to tell owner #2 to start paying the current dues.So I informed owner # 2 and told them to talk to the treasurer.Owner #2 paid but the tresure & president refused to accept payment.This was not discussed with me the only reason I know this is because I have asked owner #2 to keep me informed. We are in colorado I think what they are doing is Illeagal I am considering resigning but at the same time I want to help owner # 2. What do you recomend I do? The president is talking with a lawyer but I have no information about this lawyer and no way to contact them. I don't want to be held accountable for the president & Treasurers actions when I am not being informed about what is going on.

This case may be an example of how to enforce the 2005 amendments to CCIOA (Senate Bill 05-100) which became fully effective on 1/1/06. I have suggested Owner #2 request copies of the REQUIRED HOAs Rules and Regulations on Delinquent Assessemts and on Inspection and Copying of Association Records. Also, I suggested she get a copy of the HOA's procedures for a Hearing on the alledged violation of failure to pay late charges.

I volunteered to review the records and attend a Hearing with her. Apparently the owners did not received an assessment notice advising them of the amount and date due on monthly assessments until 12 months after they moved in. Yet the President expects them to pay significant late charges from month one. The Board claims they have been to mediation, but the so called mediator was a Board member! And now the President plans to file a lien.

The President, also the Registered Agent of their corporation, does not live in Colorado. Thus, it will be interesting to see if she can comply within the 5 day limit for access to the requested association records. These records are required to be maintained by the Register Agent and available upon request for viewing. And this begs the question, doesn't the Registered Agent have to reside of Colorado? Also, I don't think she should be a member of the Board much less the President.

These are example of how HOAs get a bad reputation. These things would not happen with a competent Board or a good Managing Agent. I really hope the Board is complying with state statutes and will treat #2 in a professional manner. If not, I suggested replacing Board members who are illegal and/or not acting in good faith. I stand committed to help #2.

Frances, I have met with Natalie and hopefully there will be a meeting with the Board next Wednesday to try to resolve her problem. I will attend with her and take a copy of the new CCIOA statutes to educate the Board.

Regarding your resignation, was it verbal or in writting? If in writting I would hope you advise them you have changed your mind and will not be submitting a written notice of resignation (usually a written notice is required for a resignation to be official). I think your demeanor is a valuable asset as a Board member. You can help this Board and Natalie. If you change your mind I will hopefully see you next Wednesday.