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An Article
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The abuses in the homeowner association governed community
A private party capable of "fining" you unlimited amounts, the ability to foreclose for trivial, disputed amounts and the "priority of payment" scam
October 28, 2006
By
Bill Davis
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This is our fourth house in 40 years and our first in an HOA. Our previous homes were in well-maintained neighborhoods with friendly neighbors and a feeling of community and no HOA. Each one of those three homes sold within the average amount of time and each appreciated in value, two of them almost doubled in value.
In our current neighborhood in a high end development, homes are on the market in excess of the normal 3-6 months. There are 13 completed homes on our street. One has been on the market for well over a year and the asking price has dropped considerably. Another has been empty since it was completed 2 years ago. Three are for sale. This is pretty typical throughout the 2000 lot development. And the vacant homes, either never sold or foreclosed on by the mortage company or simply abandoned, are sitting on weedy lawns. And the empty lot down the street where mounds of gravel were dumped with weeds is an eyesore and a haven for rodents and the snakes (rattlesnakes and cooperheads) that fee on them. Our association is working on that - and has been for over a year. We finally petitioned the city to enforce its weed ordinance.
I agree that one of the major factors in a home's value depends on location,location, location. But there is also one other factor and that is the market. Two homes we sold at a considerable profit were sold during a sellers' market; the third, which did not do quite as well and was an older home, during a buyers' market.
Pity the poor people in our subdivision who have been transferred and could not sell their homes and are now stuck with two housing payments.
The idea that without rules and regulations and an HOA to enforce them, homeowners revert to their primative state and wreak havoc, creating slums and lowering property values is preposterous and insulting to the vast number of homeowners who take pride in their homes and their surroundings simply because they want to.
In the 2 1/2 years I have lived in an HOA, I have heard more people grumbling about other homeowners than I have in 40 years of living in a non-HOA neighborhood. And they are not grumbling about the empty houses,they grumble about the lawn statutes being too high (over 3 feet), the color of a house on the other side of the development is not to their taste (blue), and that person who has the audacity to park their brand new PINK cadillac (other colors being acceptable)in their own driveway, and on and on.
Posted Oct 31 2006 2:47PM CET
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Judith Watkins
, Texas |
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Mr. Joseph Cole of North Carolina wrote in a comment on this site "It is a fact that in any given area of the nation, the communities that turn over the fastest are those with HOA's. The reason: We are a mobile society, people are transfered around the nation by their corporations 12 months a year. Those people seek attractive communities with well maintained homes that can be sold quickly,when the transferee is transfered again; usually in 2 to 5 years. Trashy yards and pooly maintained homes do not appel to a great majority of buyers."
Sir, I hate to burst your bubble, you are not as well educated in this matter as you think. Statistics have shown that homes in an HOA have an overall lesser value than homes located outside of an HOA.
We have been trying to sell our home for the past three years its located within a HOA community, our home has been appraised at $520K and it's a beautiful custom home, however time and time again, as soon as potential buyers find out that they would be governed by an HOA they say no thank you, and run for the hills in a matter of speaking. This trend is seen clear across the country, it is individuals as yourself who foster these monsters known as HOA.
I'm a victim of such an HOA and private non-for profit corporation; they are a live and well practicing their deception in Roy, Washington, under the pretenses that they are preserving land value. I was injured and had to have spinal surgery, I have a plate with eight screws holding my cervical vertebrae in place,
I lost most of my functions in my right arm which will never return back to normal again, all because of these so called fine and Christian HOA citizens, we suited the HOA and the members, however they got off scott free, because Pierce County Judges were bias and sided with the HOA lawyers and the HOA President (a Pierce County Sheriff Deputy) and members.
We lost our case, and so are out $55K in attorney fees, my spinal surgery cost $120K of which only 20% was covered by our health insurance, and we paid a grand total of $45K in medical bills before and after the surgery, my present medical condition will only get worse over time, but at least I'm still walking and not wheel chair bound yet. For 2 years, due to the injuries I was forced to ambulate on two forearm crutches, and I became bladder and bowl incontinent and was in constant pain.
Because of the sustained injuries, I lost my Accounting business, a loss of $45-55K a year. These same HOA members trespassed on our property at will and poisoned our pets on eight separate occasions, finally in February of this year, we were not able to save one of our precious pet, and so she succumbed to the poisoning, our total Vet bills amounted to more than $5K for trying to saving our precious pets. No one should have to live in such conditions and constant fear.
The President of this HOA is a Pierce County Deputy Sheriff, and he runs the street we live on, and the Rainier Vista Landowners Association (HOA) like a Gestapo regime, Hitler would have been proud of these HOA members and there president.
It is a cry when local government sides with these HOA, and you as the land owner has to pay double taxes on your property, one such taxes is being paid to the local counties you reside in, the other taxes in the form of HOA dues, for what you might ask, for the same things that your paying the county already, i.e. the responsibility of the county to repair roads etc.
If anyone is under the assumption that the local or the US government is going to come to your aid in with these matters, think again, there hands are to deep into the HOA pockets since they are all profiting from this fraud and deceiving plots.
Nothing is going to change, because the people of this country continue letting these states men and local agencies get away with these fraudulent activities.
Mags in Washington
Posted Oct 31 2006 4:32AM CET
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Mags Wittich
(View Profile)
Roy, Washington |
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Dear Mr. Cole:
If you really are from North Carolina, I cannot understand how in good conscience, you could write the article you posted. Take your head out of the sand, and look at some of the cases, the homeless victims, and what is being done in North Carolina, and by whom!
Do you think no one had nothing better to do than to pass HB 1541. Do you listen to the elected officials involved, know the people, or look at what has truly happened to some very innocent people and families?
Your posting simply indicates your ignorance concerning this extremely important matter. I do not fault you, and I believe somewhere there are some who do not pay their bills, but I believe those are few, and there is a federal debt collection act to work in accordance with.
Do some checking Mr. Cole, and especially in North Carolina. I am sure you will not have the same perspective as you have in your initial posting.
Also, you may want to take the time to talk to some of the victims from North Carolina. They deserve to be heard.
Sincerely,
Posted Oct 30 2006 6:32PM CET
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Username withheld
, Pennsylvania |
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Mr. Joseph Cole of North Carolina:
You call homeowners who don't pay "cheats". Let me ask you who the "cheaters" would be in the following HOA scenarios......
• Election Fraud
• Illegal CCR's
• Secret board meetings
• Failure to disclose financial books and records upon request
• Illegal meetings
• Management company fraud and self dealings
• Insurance company fraud and self dealings
• HOA Lawyer fraud and self dealings
• Board member fraud and self dealings
• Financial misappropriations
This isn't about "cheat" homeowners. It's about "cheat" HOA board, property managers, and lawyers. There is no proof that "cheat" homeowners just run amuck in HOA's. People generally desire to protect their homes and credit rating unless they are just financially destitute or.....maybe they suspect criminal activity and don't feel like turning over their hard earned income to a crook!
This is about good people demanding to know and having a RIGHT to know where the hell their money is going, and why they shouldn't have to pay for the incestuous illegal shenanigans of entrenched and crooked HOA boards, lawyers and managers working in cahoots against innocent homeowners.
Let's solve the problem once and for all Mr. Cole.
Would you agree to the following - yes or no?:
Would you agree to require by law that ALL current and updated applicable rules and regulations of homeowner association communes, as well as ALL applicable HOA related civil, corporate, municipal, and business codes etc., be disclosed to each and every prospective home buyer prior to purchase!!???
Meaning that when a prospective home buyer places a deposit to buy the home, they must receive ALL applicable HOA governing documents within 5 days. They must have 5 days to review the documents. If they agree, they must sign an affidavit that they have received and read and understood all of the CURRENT and UPDATED applicable HOA governing documents. If they don't agree, they can get all their deposit money back.
In those States that allow foreclosure by HOA neighbor - a SEPARATE DOCUMENT must be signed and notarized that details in 12 point bold face type and in everyday languge (not legalese mumbo jumbo) the foreclosure by HOA laws and procedures and how a fellow neighbor may have the right to initiate foreclosure proceedings against their home for paltry sums in late dues, special assessments, etc, in as little as 90 days time, and whether or not those sums have been proven to be valid or not, AND that lawyer fees incurred due to attempts to collect the debt must be satisfied prior to the initial debt.
There should also be a requirement that ANY changes to the applicable governing documents that have taken place after the initial reviews but PRIOR TO signing the FINAL closing documents - MUST be disclosed to homeowner. If the homeowner disagrees with the new changes, they have the right to cancel the sale without any penalty.
THAT, sir, would at the very minimum resemble proper disclosure. It's not perfect but it's a heck of a lot more "contractual" than what you purport to represent as "contractual".
The fact that these stringent, controlling, life impacting laws can change even before you have had a chance to finish buying and move into your new home, and with or without your permission, makes HOA documents a fatally and inherently flawed so called "contract".
Quite simply - this HOA lifestyle is contrary to how red blooded freedom loving Americans desire to live in this country and that complete and proper disclosure of the HOA governing documents would SINK the HOA housing market.
IF the truth were properly disclosed - they wouldn't buy.
Third world mini fiefdoms run by controlling neighbors, with too much time on their hands, and a vendetta, is about as Un-American as it gets and it is NOT how most Americans desire to live.
I say to them: Get a real job. Get a life.
I Remain,
P. Flamingo, Esquiress
Posted Oct 30 2006 3:42PM CET
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Username withheld
, ot |
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One thing I hear people say about the HOA's in my neigborhood is that it helps the value. I find that to be so untrue.
My previous neighborhood had no HOA and many homeowners including myself made high returns when we sold our houses. Also when the housing market was really hot the homes would not even be on the market for a day. It's not about HOA's, it's about location, location , loction.
Unfortunately I moved to a neighborhood with an HOA. With the market slowing down the houses in our neighborhood have been on the market for a very long time. It's not about HOA's. It's about location, location, location.
Posted Oct 29 2006 3:45PM CET
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David Pritchard
, Virginia |
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Check this HOA case abuse listing in Texas at http://missouricitychatter.blogspot.com/2006/10/another-missouri-city-neighborhood.html
Posted Oct 29 2006 1:13PM CET
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Username withheld
, Texas |
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