June 06, 2007

By Jay Goldstein

After reading Villa Appalling by Donie Vanitzian I can attest that the injustice in incalculable. My brother lost his home in Coldwater North Cooperative, Inc. because he is mentally ill and didn't know he had to pay $540 in dues. My mother left her home to us to protect my brother. He will never be able to replace that. The monthly fees for the home she paid in full for nearly 20 years ago is only $183 a month. I tried to pay the money for him when I found out, and they would not accept it. He will never be able to support himself and is currently on the streets with nowhere to go.

My mother passed away last July and my brother lived in their cooperative (like a condo) after she passed on. He is mentally ill and did not pay the association fees for 3 months and they used the Unlawful Detainer process to evict him and take away our interest in the CID. They then sold the membership to someone else for about $50,000 less then its worth on the open market. I was told, originally it was going to be sold to the sister of one of our board of directors, but my lawyers and others called them on it and they sold it to someone else a few days later. I am told that the association will not give me the money that they got for the "illegal" sale until my mentally ill brother signs a settlement offer that removes the association of any liability for their wrongdoing. In my book that's called blackmail no matter how you look at it.

I have racked up over $4,000 in attorney fees (on just letters and fax responses alone) and still cannot get any results. Doesn't it seem like the attorneys are the only ones who seem to profit from methods like this. In this transaction I'm referring to the association where my mothers homes is. The law firm is Swedelson & Gottlieb. My understanding is that the HOA attorneys Swedelson & Gottleib are charging me almost $40,000 in fees and additional charges to "process" this against us. I stated in our cease and desist letters that the Davis-Stirling Act prohibits this and the association through their counsel say the Davis Stirling act does not apply (it does apply see: CA Civil Code 1367.4) Looking back at 1367.4 it was my understanding that that the reason for this law is that several lawyers were stealing property for fines and assessments and profiting by reselling them.

Imagine having a home and losing it because you were behind for only $540 in dues, then have them strong-arm you into losing nearly 30% of its value and then also charging you $45,000 for the pleasure of it. We lose our lifetime home and the HOA lawyer gets to buy a new Hummer. Sad, very sad indeed!

I sent letters to the Assembly and Legislators (Sheila Kuel, Jane Harmon and Diane Watson) and have received nothing. How can this happen? Who are the people to go to when this happens? I am at a loss on how to deal with it. I don't have $25,000 to hire an attorney who will only take the case on retainer at $375+ an hour. Our HOA broke the law, period, Who are the "police" we call when we get raped in this manner? I've tried every avenue available; Legal Aid, ADA, HUD, Attorney General, etc. and am told that I should just walk away because unless I can pay to hire a private attorney, it is just a lost cause. The HOA attorneys are just thinking that we will give up and they will get away with it.

Can anybody help me?


NOTES BY AHRC STAFF: Jay Goldstein's lost his family home in this Swedelson & Gottleib foreclosure . He provided the following additional information on this Case # 06B04350to the staff of AHRC News Services.

Jay's mother owned and lived in the condo for 20 years. She died and left the condo to his disabled brother Alan Goldstein who lived there. Alan is undergoing serious medical treatments, incurring major medical bills, and lives on Social Security. He does not own a home.

The dues for Coldwater North Cooperative Homeowners Association, a stock cooperative Common Interest Development is $187 per month. Homeowner Alan missed 3 month of dues payments, and his home was foreclosed to collect $549.

The HOA lawyer is Swedelson of Swedelson & Gottleib, a CAI collections and foreclosure lawfirm. Swedelson told him that the Davis Stirling laws did not apply to this HOA when Jay told that the Davis Stirling Act makes it illegal for him to foreclose for $549. ( SB 137 by Senator Ducheny in 2005 was added to California Civil Code Section 1365 and Section 1367: " This bill would revise and recast the procedures for collecting delinquent assessments for certain debts that arise on and after January 1, 2006. The bill would provide that when an association of a common interest development seeks to collect delinquent assessments of less than $1,800, not including accelerated assessments and specified late charges and fees, the association must either file a civil action in small claims court or record a lien upon which it would be prohibited from foreclosing until the amount equals or exceeds $1,800 or the assessments are more than 12 months delinquent.").

Reportedly, Swedelson & Gottlelib was sued for selling another home and recently paid to settle a RICO lawsuit against them by the homeowner. See Jay T. S. Chen v. Association Lien Services, Niguel Ranch HOA , Seagate Niguel HOA , Seabreeze Management, David Swedelson, Sandra Gottleib.. Association Lien Services is reported to be owned by Swedelson.

Los Angeles County court records incorrectly list Alan Goldstein as a lawyer on the foreclosure they allowed. It lists eviction lawyer Dennis Block as doing the eviction. Jay informed him it was an illegal eviction under the Davis Stirling Act and he ignored him. After the court allowed the eviction, Swedelson told Jay he would have his mother's belongings packed and removed. Jay told him he did not want anyone handling their possessions and Swedelson said he would have a security guard present when Jay went to move their belongings. Swedelson's 15 year old son was sent as the guard.

After calling almost 60 agencies and lawyers and getting no help, Jay called the lawfirm of Richardson & Harmon. Jay said that Richardson told him he would be interested in taking the case. He also informed Jay that he and Swedelson had worked together and no longer did due to differences. He then had Jay sign a contract that said his firm would not litigate the HOA. The letters and faxes by the firm has cost Jay $4,000 so far. Andrew Douglas of Richardson & Harmon has been handling the communications.

After AHRC staff confirmed the basic public information facts of this foreclosure, AHRC staff forwarded the information to Mr. Gottschalk of Gottschalk & Associates. Mr. Gottschalk has been requesting information from the public about Swedelson & Gottleib and Peters & Freedman via the AHRC website. He has said he would be filing RICO cases against both these lawfirms.