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Subject: HOA rules and regulations

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JudyK5
(Michigan)

Posts:3

07/27/2010 7:06 PM
I am new to the HOA community and have a few questions pertaining to the state of Michigan. 1. Can a HOA deny a homeowner based on credit scoring? 2. Can a HOA prevent a homeowner from selling their property by land contract? 3. Does the HOA have to file their rules and regulations with the clerk of courts? Thanks!

GlenL
(Ohio)

Posts:3526

07/27/2010 10:53 PM
1. No 2. No 3. No

Too bad the only people who know how to run the country are busy driving cabs and cutting hair. - George Burns

JudyK5
(Michigan)

Posts:3

07/28/2010 3:56 AM
How do you fight entry into a community when...a 65 year old sold her house, bought a condo on land contract in MI and was told 3 weeks before the move to fill out the application for the HOA - she found out on the Friday before she was to move that she was denied based on her credit score.... Funny thing..we cannot find out who "sits" on the HOA board or is in charge..

GlenL
(Ohio)

Posts:3526

07/28/2010 4:03 AM
Posted By JudyK5 on 07/28/2010 3:56 AM How do you fight entry into a community when...a 65 year old sold her house, bought a condo on land contract in MI and was told 3 weeks before the move to fill out the application for the HOA - she found out on the Friday before she was to move that she was denied based on her credit score.... Funny thing..we cannot find out who "sits" on the HOA board or is in charge.. All you need to do is contact the MI Secretary of State's Office to find out who the registered agent is for the COA. It sounds to me like the seller may have had second thoughts of selling to someone with damaged credit and is using the "HOA won't let me" card.

Too bad the only people who know how to run the country are busy driving cabs and cutting hair. - George Burns

SusanW1
(Michigan)

Posts:5035

07/28/2010 5:51 AM
WHAT was she denied? The land contract or membership into the HOA?? (I bet it's the land contract since the HOA has nothing to do with property purchasing) However, . . . if the HOA owned the property, then it could deny the land contract.

DonnaS
(Tennessee)

Posts:5671

07/28/2010 9:07 AM
Judy, What type of housing is this? Condo, stand alone homes or otherwise. But as Glen said, NO, NO, and NO.

JudyK5
(Michigan)

Posts:3

07/28/2010 2:06 PM
Seller doesn't really have anything to do with it besides that he "neglected" to tell the buyer that she had to be approved before moving into the home. Now the "managing" agent is trying to say that she was denied entry because of her credit score (which she had no idea was as bad as it was). When I talked to the managing agent, he said she would be reconsidered if her score raised and she was able to get financing. She already has a land contract via a lawyer, has insurance, utilities in her name, was set to move on 7/20. Her house sold here via a deed in lieu...she's 71 years old.. Yes, I'm taking this on as a personal cause. I think its wrong. And there was a pretty hefty down payment involved. She wants to be by her only son and grandchildren. So...anybody see any options? Thanks!

SusanW1
(Michigan)

Posts:5035

07/28/2010 2:50 PM
Holy Cow! Your management checks credit scores of homeowners? WHERE in your bylaws or CCRs does it give the board or the HOA power to do this?

SteveM9
(Massachusetts)

Posts:1442

07/28/2010 3:54 PM
denied entry because of her credit score.....already has a land contract via a lawyer, has insurance, utilities in her name, was set to move on 7/20. Her house sold here via a deed in lieu.. Heh...... your association is going to end up in court. Unless you approve her, its going to cost you sooo much money in legal fees, and on top of that you will probably loose. Good luck.

GlenL
(Ohio)

Posts:3526

07/28/2010 6:39 PM
Get an attorney and let him or her deal with itThere is something going on that doesn't sound right here; are you sure this is an HOA and not a CO-OP?

Too bad the only people who know how to run the country are busy driving cabs and cutting hair. - George Burns

DonnaS
(Tennessee)

Posts:5671

07/29/2010 8:48 AM
Glen , In my years of dealing with different HOA's in Florida, several of them had "Interview" requirements beefore an owner could be cleared for a purchase. I went thru a few myself, having rental units. Each time, , after this bogus procedure, I would ask, what would be a reason to deny me? Some got really scared and some got on the offensive saying that legally, they could not deny but this procedure is in the documents. I guess that some Boards take it as a good scare or it gives tham actual cause to deny for residency. One Board was clearly race oriented (I am caucasian) and I always waited for that issue to be brought up but I guess they were at least that smart not to go down that road. So the bottom line is,there is no reason other than a sexual preditors distance limits that any Board could deny a purchase or residency.

GlenL
(Ohio)

Posts:3526

07/29/2010 10:23 AM
Donna, I’m well aware of the interview restrictions prevalent in FL CC&R’s. For the most part you don’t see them north of the Mason-Dixon Line; however you do see documents allowing the BOD the right of first refusal but this was not alleged here. What we are getting is a second hand report of an incident that supposedly happened in an HOA. I contend that there is something we are not getting here, either the seller backed out and is blaming it on the HOA or the HOA has some type of financial interest in the property.

Too bad the only people who know how to run the country are busy driving cabs and cutting hair. - George Burns

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