- Joined
- Aug 30, 2009
- Messages
- 3,827
- Reaction score
- 1,374
- Gender
- Undisclosed
- Political Leaning
- Independent
I heard this piece on the way home from work yesterday. There is a link to the audio also.
Not So Neighborly Associations Foreclosing On Homes : NPR
Homeowners associations (HOAs) are foreclosing on homes when people get behind on one or two association dues. Sometimes people on the HOA boards who are voting to foreclose on the homes, are then picking them up on the auction block and turning them over for a profit.
The man in the story actually had his $300,000+ house totally paid off, his wife got behind on two payments while he was serving our nation in Iraq, and before he was able to get back to try to straighten things out, they had foreclosed and sold his home at an auction. The HOA defended themselves saying they merely followed the letter of the law. NPR stated in the story that 10% of foreclosures were because of this, and that the law totally favors the HOA, and that this can all be done without going before a judge. In Texas, where the featured story took place, there is only a 29 day waiting period.
It's a travesty! I would never live anywhere where I had to be a part of a HOA!
Not So Neighborly Associations Foreclosing On Homes : NPR
Homeowners associations (HOAs) are foreclosing on homes when people get behind on one or two association dues. Sometimes people on the HOA boards who are voting to foreclose on the homes, are then picking them up on the auction block and turning them over for a profit.
The man in the story actually had his $300,000+ house totally paid off, his wife got behind on two payments while he was serving our nation in Iraq, and before he was able to get back to try to straighten things out, they had foreclosed and sold his home at an auction. The HOA defended themselves saying they merely followed the letter of the law. NPR stated in the story that 10% of foreclosures were because of this, and that the law totally favors the HOA, and that this can all be done without going before a judge. In Texas, where the featured story took place, there is only a 29 day waiting period.
It's a travesty! I would never live anywhere where I had to be a part of a HOA!
Capt. Mike Clauer was serving in Iraq last year as company commander of an Army National Guard unit assigned to escort convoys. It was exceedingly dangerous work — explosive devices buried in the road were a constant threat to the lives of Clauer and his men.
He was halfway through his deployment when he got a bolt from the blue — a frantic phone call from his wife, May, back in Texas.
"She was bawling on the phone and was telling me that the HOA [homeowners association] had foreclosed on our house, and it was sold," he says. "And I couldn't believe that could even happen."
Clauer had a hard time understanding what his wife was saying. His $300,000 house was already completely paid for. Could it be possible that their home was foreclosed on and sold because his wife had missed two payments of their HOA dues?
In many states it is not difficult for an HOA to foreclose on a member's home for past dues even if the amount owed is just a few hundred dollars.
"I was really in a hurry trying to get home before my family was living on the streets," Clauer says.
Sold For A Steal
But by the time he got back to Texas, it was too late. The Clauers' four-bedroom, 3,500-square-foot home had been sold on the courthouse steps for just $3,500 — enough to cover outstanding HOA dues and legal costs.
The new owner quickly sold it for $135,000 and netted a tidy profit.
"Basically it's everything to us," Clauer says. "Having a house like this paid for was huge for us, for our retirement plans. We thought we were so far ahead, and now it's like we're starting from the beginning."...