North Carolina is certainly a state where the HOA system has gotten way out of control. Fortunately, outspoken advocates like Ole Madsen (HEAR4NC.org) are articulating the insanity that’s disrupting the lives of so many homeowners around the country.
When you buy into an HOA, you’re essentially pledging all your personal assets to a group of partners, most of whom you’ve never met. Your assets become the de facto assets of a non-profit corporation which is potentially subject to liability lawsuits, damage from natural disasters, poor workmanship by developers, frivolous legal actions by overreaching board members, embezzlement by board officers and management companies. That’s a crazy kind of partnership, but it’s one that tens of millions of Americans have blindly accepted. And it’s one where HOA law firms are bathing in the mythical pot-of-gold.
In many HOAs homeowners are beginning to realize that they’ve entered a vortex that is spinning downwards, threatening property values and life savings.
The TV story linked below is worth watching. But as you do so, just be aware this isn’t an isolated incident. The HOA system in America is so badly broken it can never be fixed. It’s built to reward criminal behavior and those who bully their way to the top. When there’s a record of bad behavior by HOA officials and management companies, how do you persuade a potential buyer to take over your mortgage?