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Legislation
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CAI/CLAC DECLARES WAR ON ANTI-FORECLOSURE LEGISLATION
CAI/CLAC circulates Petition to defeat SB 1682(Ducheny) and AB 2598(Steinberg)
May 25, 2004
By
AHRC News Services
Copyright AHRC News Services
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My comments to number 6 are :
* The problem homeowners have is the astonomical lawyers and managers fees, not the dues. Majority of homeowners pay their dues
I suspect the problem, speaking from the viewpoint of a condominium is ( 1 ) the HOA dues probably are not sufficently high to fund the reserves ( 2 ) condominiums do not have an active mainteance program in place ( 3 ) Condo management companies have little experience in spending a LITTLE BIT OF MONEY NOW to prevent MAJOR BILLS LATER.
Majority of homeowner's paying their dues is not in dispute, the question is How much responsibility does the ENTIRE COMMUNITY have for the delinquent dues.
• Most board members I know say they have always collected through small claims, or after placing liens. They did not use high priced CAI lawyers and managers. The delay in collecting the few late payments did not cause their homeowner associations much hardship. The ones who reported hardships were the ones with high living managers and lawyers and high spending board members.
See my post entitledForeclosures from a Homeowners Treasurers viewpoint, where chronically delinquent homeowenr association dues are discussed. A poorly managed homeowner association will have higher dues than well managed homeowner association. Our board experience is that VERY FEW HOMEOWNERS express any community interest.
The homeowner associations that require a special assessment often do not have the luxury of waiting for dues.
• For the few that are not able to, Homeowner Associations like cities, can create reserve funds to tide over while collecting unpaid dues
I agree that there should be a reserve fund for uncollectable homeowner association dues.
• Mortgage companies own the house and until you pay off the mortgage, they should have the right to foreclose
Lack of homeowner association dues means the property is not maintained.
• As for your statement, "The HOA's I have looked at are looking at major special assessments of $10K+ per owner. " - where exactly are these homeowners association you are looking at? Each needs to be looked at individually so the homeowners can correct the undefunding and do the necessary repairs or correct misappropriations problems, if they exist.
My $10,000 plus per unit owner which is based on many Silicon Valley Condominiums is based on : ( 1 ) the required upkeep on our homeowners association and ( 2 ) most other homeowners associations in the area which are not as well maintained.
• Owners in homeowner associations need relief for the unconstitutional taking of their homes. Banning non-judicial foreclosures by maintenece corporations aka Homeowner Associations is a step in the right direction.
If you accept that ignorance of the law is no excuse then every California Homeowner since 1985, assuming he received the proper disclosure packet, was aware of the right to non-judicial foreclosure. No doubt there has been abuse in non-judicial foreclsoures, the question is should homeowners associations have any foreclosure rights.?
Posted May 29 2004 1:56AM CEST
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Stephen Hohs
(View Profile)
, California |
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Response to Stephen Hohs Comment 4. Foreclosures - from a Homeowner Association treasurer point of view
I agree that homeowner associations should be abolished and disagree with most of your other points.
* The problem homeowners have is the astonomical lawyers and managers fees, not the dues. Majority of homeowners pay their dues
• For the few that are not able to, Homeowner Associations like cities, can create reserve funds to tide over while collecting unpaid dues
• Most board members I know say they have always collected through small claims, or after placing liens. They did not use high priced CAI lawyers and managers. The delay in collecting the few late payments did not cause their homeowner associations much hardship. The ones who reported hardships were the ones with high living managers and lawyers and high spending board members.
• Mortgage companies own the house and until you pay off the mortgage, they should have the right to foreclose
• Homeowner Association liens , like Mechanic's liens in California - are for people with no ownership interest in your home..
• As for your statement, "The HOA's I have looked at are looking at major special assessments of $10K+ per owner. " - where exactly are these homeowners association you are looking at? Each needs to be looked at individually so the homeowners can correct the undefunding and do the necessary repairs or correct misappropriations problems, if they exist.
• Owners in homeowner associations need relief for the unconstitutional taking of their homes. Banning non-judicial foreclosures by maintenece corporations aka Homeowner Associations is a step in the right direction.
Posted May 28 2004 2:52AM CEST
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Username withheld
San Juan Capistrano, California |
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Response to Wayne Parenteau
That CAI slogan - "Let's not throw the baby with the bath water" Who are you Wayne?
Do you, like CAI, live off the homeowner association concentration camps?
Posted May 28 2004 1:50AM CEST
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Username withheld
San Juan Capistrano, California |
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1. Foreclosures from a Homeowner Association's treasurer point of view - is discussed in the Forum General Discussion section where our HOA delinquiencies are discussed.
2. SB1682 gives a couple of options :
a. Small Claims Court-
A substantial number of small claims court judgments are uncollectable. Always remember, with the exception of COUNTY PROPERTY TAXES WHICH HAVE AN ABSOLUTE PRIORITY, "first to record is first in right". Often there is no equity in the property making enforcement worse. Also, one will have to make multiple trips to small claims court to get new judgments. Small claims court can only award for past damages.
b. Foreclosure over $2,500-
Here are the legal problems where Skip Daum actually has a point, this is legally unchartered territory : (a) Redemption period in a non-judicial foreclosure WHICH IS TOTALLY WITHOUT PRECEDENT in California Law. (b) Homestead Equity provision. Both (a) and (b) open up a big can of worms - The precedence could scare off mortgage companies. You would probably be better off BANNING NON-JUDICIAL FORECLOSURES all together.
3. Counties wait 5 years before they start to take action - County can afford to wait 5 years as THEY HAVE ABSOLUTE PRIORITY. In practice, the mortgage company QUICKLY MAKES THE PROPERTY PAYMENT and can foreclose.
4. Why should homeowners associations be in the exception and have the right to take someone's home in a hunderd days ? -The mortgage company can.
5. Most Associations have hunderds of thousands of dollars in reserve -The HOA's I have looked at are looking at major special assessments of $10K+ per owner.
6. It should be public policy of any society to try to keep people in their homes as long as possible - the problem with HOA's is that YOU ARE RESPONSIBLE FOR OTHER INDIVIDUALS.
The simple fact is that HOA is by definition a COLLECTION OF INDIVIDUAL HOMEOWNER FUNDS. There is no free lunch. Unlike the government a HOA simply can not print money to pay bills. No one can argue with the belief that one should not lose his residence for a couple of hunderd dollars; on the other hand no one has the right to stay in a condominium like HOA - where the dues pays for water, garbage, common area upkeep for YEARS without paying.
See response
Comment 6. Banning non-judicial foreclosures by maintenece corporation homeowner associations
Posted May 27 2004 2:53AM CEST
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Stephen Hohs
(View Profile)
, California |
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I would have to support the defeat of these two bills. If 1682 had a limit of $250.00, it would make sense. And of course, 2598 is just pandering. It makes no sense at all. As a homeowner I oppose deadbeats who do no to want to pay their way. We should not get carried away to the point that it wars against the rights of those who pay their way.
I think we are getting carried away. Let's not throw out the baby with the bathwater.
See Response
Do you live off Homeowner Association Concentration Camps?
Posted May 26 2004 8:26PM CEST
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wayne Parenteau
(View Profile)
stanton, California |
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WHO WOULD YOU TRUST? COMMUNITY ASSOCIATIONS INSTITUTE (CAI) OR HOMEOWNER ADVOCATES?
As a homeowner advocate, I consider ANYTHING that CAI says to be suspect and driven by green$. They make a lot of money doing what they do. The fat paychecks generated off the sweat equity and backs of "Joe Homeowner" are paid out to many a CAI member across the country.
Whether in the form of HOA dues being used to pay to CAI member property managers, realtors, builders and other vendors, or lawyering and litigation costs to CAI member lawyers, or taxes to CAI pandered politicians - it erodes homeowners hard earned equity!!
On the other hand - Homeowner Advocates have little to gain by spreading their message to "Save Homes" and "BAN NON-JUDICIAL FORECLOSURES". We are passionate about what we do for many reasons. Many of us are disgusted by this rape and pillage of the American Dream of Homeownership, much of it propagated by the bad laws passed by the pandered politicians.
As a society, we need to value the importance of passing down a legacy, not a liability to our heirs and owning our lands for generations to come.
In some countries, mortgages are financed for 100 years and "home sweet home" is a respected and treasured safe haven where you can lay down your roots, raise your families for generations to come and somewhere you can always go back to when you are ready to die.
CAI wrote in a recent petition SUPPORTING the use of NON-JUDICIAL FORECLOSURE BY NEIGHBOR the following: "Why punish millions of dues-paying members for the neglect or inability of an extreme few?"
The better question is this, How can you PUNISH an "extreme few" with such a punitive tool as non-judicial foreclosure by a handful of neighbors with no background checks, in control of an inherently flawed corporate government with NO system of checks and balances, and who are "advised" by handfuls of HOA indsutry lawyers with a ve$ted intere$t?
The American Dream has become the Homeowner Association Scheme and homeowner advocates commend those representatives who dare to stand up to decades of this homeowner association corruption and put an end to it once and for all!!
SUPPORT ASSSEMBLY MEMBER DARRELL STEINBERG'S BILL - AB2598.
BAN NON-JUDICIAL FORECLOSURE BY NEIGHBOR - IT'S UN-AMERICAN.
From Behind the Orange Curtain,
"Joe Homeowner"
Irvine, California
Posted May 26 2004 8:19PM CEST
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Username withheld
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The naysayers against the AB 2598 and SB 1682 are simply looking for their own economic well being. Any state imposed bill that would favor non-judicial foreclosure is UNCONSTITUTIONAL. The Fifth and Fourteenth Amendments clearly specify that no State shall have the right to deprive the citizens of life, liberty and property WITHOUT DUE PROCESS.
Where are the citizen's right to DUE PROCESS?
More importantly, from foreclosure you have gone to highway robbery. The premise is simple. The article mentions that Tom Radcliff lost hist $280,000 for $120. There is no economic recompense to the owner for any potential equity on the property. If the home is paid off, for example, who gets the balance of $279,880? Coupled with the forementioned fact that HOA's can exlcusiely bypass the DUE PROCESS through unchallenged state imposed, CAI favored laws that would permit non-judicial foreclosures.
America needs to wake up and see who's literally leaving them in the poor house. The proponents of non-judicial foreclosures as well as the Government officials who support this Unconstitutional behavior need to be put on notice of these illegal acts that they are committing against the citizens. Because many people do not know the applications of the law, they are abused and taken advantage of through biased and quasi-legal theft without merited and justifable cause of action as predetermined by the US Constitution. Hence, becuase there is no evidence of DUE PROCESS, all such non-judicial foreclosures can exclusively be considered theft.
We all know what our government's stance on theft is, but what about when it's the government that is aiding the criminals to commit these crimes? Well, for starters, people need to knowwho stands for what, then make an informed decision at election time. We, the people exclusively hold our destinies in hand. A government of, by and for the people, our proactive role is to ensure that our officials "do the right thing", and say "NO" to these thieves who seek to leave America in the financial ruin.
Posted May 26 2004 7:03PM CEST
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Username withheld
Miami, Florida |
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