Over 50 million Americans now live in homeowner associations, with estimated reserves of over $50 billion.
Where there is money, there are litigation lawyers. Across the nation, these lawyers work feverishly to control these homeowner association reserves, and to use as much of it as possible for their legal fees.
Homeowner associations have become high pay-off machines for homeowner association litigation LAWYERS. They are, in effect, one armed bandits that are rigged through the legislative process, so that the gold comes tumbling out when the lawyers and judges pull the lever.
The "gold" is the money that lawyers take from property owners' maintenance reserves, home equity, state mandated insurance policies (Directors and Officer's liability policies) and personal life savings.
The lawyers and managers use all of these to rake in unlimited lawyers' and managers' fees and costs. For example:
a) A California lawyer collected $100,000 in legal fees from CHUBB insurance for litigating and losing a bogus $5 late charge case
b) Two lawyers collected $600,000 from homeowner maintenence dues and insurance for litigating and losing over a satellite dish in the private side yard of a homeowner.
"Go for the gold!" That is the motto of the lawyers, management companies and rental judges with the help of unscrupulous homeowner association boards.
In one California association, all this played out dramatically and tragically. A corrupt homeowner association board hired a prominent association law firm to sue the builder for alleged construction defects. This law firm bankrupted the association with its legal fees which was over $500,000. It started illegally tapping into the reserves of the association - this was illegal under California law.
When several homeowners uncovered this illegal activity, the law firm went to its buddy POLITICIAN in the California legislature, and he passed an amnesty law allowing them to do it.
The California attorney general refused to take action against either the association or the lawyers. The association then filed suit against a board member who had blown the whistle on this illegal activity. The JUDGE ignored justice and the law and kept ruling in favor of the association. Her husband, despondent over what his beloved country had come to, committed suicide.
This is not what the founding fathers wanted for this country. Our soldiers did not give their lives - so that crooked lawyers, politicians and boards could turn family homes into torture chambers and places of despair.
Homeowners are arming themselves with information so they can stop this national and international home foreclosure racket. Many have created their own websites and webpages to track the racket and are linking up with one another. Others are discussing and exchanging information in discussion rooms and news groups.
The public and the media more than ever are keeping a close watch on the activities of their public servants and vendors.
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