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Subject: HOA will not foreclose
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Author Messages
WarrenS5
(Pennsylvania)

Posts:1


07/21/2016 4:25 PM  
Most of the condo owners in my assn are many years behind in their dues and the board refuses to do anything (lien, foreclose, etc). VHA will not finance in our development and property values are way down because of this. What can I do? Sue the board?
TimB4
(Virginia)

Posts:16706


07/21/2016 4:31 PM  
Get yourself elected to the Board where you will have the authority to be part of the decision process to go after delinquent accounts.
JonD1


Posts:0


07/21/2016 4:37 PM  
Well Warren

Not sure what you might sue for. and what would you hope to accomplish.

Do you have any idea why the board seems to be unwilling to act? Have you asked them?
Do they have the funds needed to take legal action? Just how long has this been going on?

My advice attend some board meetings. Speak to your neighbors and ask how they see this issue.
If you are so inclined seek a position on the board and try to get a handle on this problem.

Filing a lawsuit would be my last option.
DanaT


Posts:0


07/22/2016 2:50 AM  
Posted By WarrenS5 on 07/21/2016 4:25 PM
Most of the condo owners in my assn are many years behind in their dues and the board refuses to do anything (lien, foreclose, etc). VHA will not finance in our development and property values are way down because of this. What can I do? Sue the board?


You may want to contact this Firm. They seem to have a very solid handle on your concern as a Unit Owner.

"Here are some examples – if you are a homeowner subject to a HOA and you do to pay your assessments, the HOA can obtain a judgment against you in the amount of the unpaid assessment(s), plus interest and (so long as allowed under the by-laws) attorneys’ fees. However, even if the HOA does not file a lawsuit, Pennsylvania law gives the HOA a lien on your property equal to whatever amount is owed. If you decide to sell your home, the HOA lien must be paid in order to pass clear title. If you decide to file for bankruptcy, the HOA can be treated as a secured creditor based upon that lien. If your bank decides to foreclose, a portion of the HOA’s lien (6 months preceding the date of the sale, to be exact) will survive the sale. Finally, the law gives your HOA the right to file its own foreclosure action against your property, which could potentially divest your of title to your home (in these situations, the first mortgage holder will often step in to pay the overdue assessments in order to preserve its lien!)".

You can read their article here. Hope this helps. https://www.nmmlaw.com/lvlb/2015/02/27/pennsylvanias-super-laws-for-hoas/
MelissaP1
(Alabama)

Posts:9136


07/22/2016 12:12 PM  
Foreclosure is never the answer to your issues. It's much better to create a policy for deciding when to lien/foreclose. We have a 6 month we lien and 1 year we CONSIDER foreclosure. Foreclosure is NOT a money making proposition. It just STOPS THE BLEEDING. That is all.

Liens although they can take much time, are the best and strongest option to put into place. They stay there and accumulate over time. The owner can't sell till they pay the money owed. Not like a lawsuit where the owner can skip town. There are also restrictions on filing lien/foreclosures. You can't do that to people in ACTIVE military.

There are many more facets to collecting of funds owed. It's NOT a simple process and it's not done on your schedule. Without a clear line of what is considered late, then your all just picking/choosing the process. Which can then be fought and doesn't help enforce anything.

Former HOA President
LarryB13
(Arizona)

Posts:4099


07/23/2016 7:50 AM  
Posted By WarrenS5 on 07/21/2016 4:25 PM
What can I do? Sue the board?


The board and all those deadbeats.

A declaration is a contract between all owners. Every contract has an implied-in-law Covenant of Good Faith and Fair Dealing.

You purchased your condo in good faith and reasonably expected all other owners to do likewise. But a majority of your fellow owners shafted you by not holding up their end of the deal. Add to that a board that is not willing to carry out its fiduciary obligations to you.

The board has some discretion in how to go about collecting unpaid assessments and it is not likely that you could compel foreclosures. That said, the board nonetheless has an obligation to take reasonable steps to collect and is apparently not willing to do even that.

My advice is to hire an attorney and let things rip.
ChrisP5
(Missouri)

Posts:145


07/24/2016 9:28 AM  
Many of the owners that ignore our requests for payment respond very quickly once they receive the final collection notice from our attorney's office. We rarely end up taking someone to court after they see we are serious. Attorney bills us $50 for sending the letter which we charge back to the owner of the unit that is past due.
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