Tag Archives: FBI

Can They Really Do That?

Can an HOA which dissolved itself really come back to life and start liening homes?

Can an HOA refuse to disclose its budget to homeowners?

Sadly, we get questions like these all the time. And the answer: An HOA can do whatever the heck it wants, whenever the heck it wants and there’s very little you as a homeowner can do about it.

Sure, you’ll read lots of ‘pablum’ like in the story linked below on how homeowners can ‘reclaim’ their neighborhoods. But it’s mostly junk information. The bottom line is that if you, as a homeowner can get screwed you probably will get screwed. Get used to it. It’s a fact of life. Of course there are laws on the books all over the country. There are laws against infidelity, too. But when’s the last time you saw anyone criminally prosecuted for it?

There really is an answer for homeowners who want their boards to follow the law. Create mandatory criminal penalties for board members or HOA managers who break the law. Throw them in jail. After all, these board members ran for office promising to be honest. Just like a Congressman who breaks the public trust, nothing will ever, ever change until we start filling our jails with public officials who refused to honor the public trust.

Jail!

Nothing else will work.

(link to nonsense article about getting HOAs to obey the law)

http://newstimes.augusta.com/news/2014-06-01/ivy-falls-home-owners-divided-over-revived-association

 

 

 

 

 

 

 

 

Another Kind of Guest Blog

(note to readers: This lady’s email request was so poignant that, with her permission, I wrote it up as a ‘guest blog’. Let’s help her with some suggestions)  

 

guest blog by Pippi

Hello! As many homeowners have likely done, we bought a place with an HOA. It was in 2005, and it was our first home. I would need 2 hands to count all the mistakes we made, and have nobody to blame but ourselves.

Our real-estate agent was also an owner here, and on the board, and quite pushy. Fast-forward 9 years – our condo that we bought for 96,900 is now worth about 40k! We pay “interest-only” on the loan (almost no equity at this point). We pay 417/mo. for HOA and utilities (no washer or dryer, no air conditioner, no tv in living room, etc).

The whole property is a dump. They are trying to pass a special assessment. Our portion of it would be almost 7k. They are “offering” a payment plan of 2 years, so about $280/mo on top of the $417. If I had $700/month extra, I wouldn’t be living here. In return for this assesment, we get nothing (and in fact, it includes the demolition, but not rebuilding, of our carport for insurance reasons).

Part of the reason we bought this home was that the dues included an exercise room, hot tub and car port, and now all 3 of those amenities will be absent.

I’m looking for advice on how to get out of this mess. We can’t sell, as we’re upside down, and one would have to be crazy to enter into any agreement with this HOA. We can’t even short-sell, as an older management company put liens the on every unit for non-payment of emergent repairs. Ugh, help! Do we just quit paying and save the dough to rent? Pay the bank but not HOA? Pay both and hang in there as long as possible?

This is the tip of the iceberg as far as our HOA issues go. I could write a book, too, unfortunately.

 

Helping Candidates Helps to Educate

guest blog by Nila Ridings

You may remember my blog on May 10, 2014 about helping political candidates with their campaigns.

The time of year for that massive undertaking has arrived. I was happy to offer my help when I saw one of our Kansas legislators walking door to door on the campaign trail.

This resulted in a very interested call from Astrid. To protect her I will not be using her real name. Astrid was asking for my help to call registered voters to get their agreement for the candidate to place the campaign signs on wire hangers in their yards. The big issue of course: HOAs! We discussed the laws in Kansas about the signs and I gave her the state statute numbers. And then I asked the BIG question!

Yes, Astrid lives in a HOA with her politician husband and she has another family member, an attorney, who also lives in an HOA. We spent about a half hour talking about HOAs, property managers, the CAI, Ward’s book, Evan McKenzie’s books, George Staropoli’s books, and Shu Bartholomew’s radio show. Astrid was shocked. She had no idea of the real truth about her HOA. But she did tell me they had recently gotten their board president booted. She had to rally the neighbors to get him voted out, but she got the job done! <applause>

I expressed to Astrid that I feel Realtors should be required to disclose information about the HOAs or condo associations BEFORE they even show the client the property. Using the example of when you go to the hospital to have surgery. The check-in representative asks if you know you are there to have your right kidney removed and you confirm. The prep nurse asks if you are there to have your right kidney removed, and the surgical nurse, and finally the doctor asks the same question. Before the mask is placed over your nose to send you into a deep sleep you are rest-assured that everybody knows you are not there for an appendectomy! Astrid said, “I know you are right because I did have my right kidney removed and they even marked my body with a pen!”

Okay, so you’ve got the idea that the medical field is making every effort to avoid a malpractice lawsuit. I think the home selling and buying, HOA, and Condo industry should follow the same policies! Astrid said, but nobody would buy then. EXACTLY, Astrid is 100% correct! If buyers knew the truth about HOAs and COAs they would not buy into these nightmares with massive risks for losing their life savings and homes.

If the American Medical Association is supporting these step by step confirmations before surgery, why isn’t the CAI and the Board of Realtors Association doing the same for the housing industry? Therein lies the 40 Billion dollar question for one and the “how would we make a living” for the latter.

We are now more than ever, demanding transparency, integrity, and hopefully the following of our US Constitution from our legislators. We’ve had enough and the polls are starting to show it. Shouldn’t we be demanding the same from those who are selling us the biggest investment of our lifetime?

If we’re able to say, no my appendix is fine, I’m here for my right kidney to be removed. Shouldn’t we also be able to say, NO to an HOA or condo association before we’re shown the property? Why do we have to be subjected to the sales pitch about the beauty of living in the HOA community if we are informed of the truth in advance that we are signing away our US Constitutional Rights, becoming business partners with all of our neighbors in a non-profit corporation, and the HOA has the legal right to assess us to the point our bank accounts could be drained down to pennies.

Don’t we have a RIGHT TO KNOW this before we’re sitting at the table signing our signature on legally binding documents? And the moving van is loaded with all of our possessions because we’ve sold our HOA-FREE property to somebody smarter than we are! I say, yes we do have that right and that needs to be the message we are sending to our legislators along with our fight to end the days of abusive HOAs.

Gotta go, time to hit the campaign trail!

Gold? Fuggeddaboudit!

After the financial blogs of the past two nights, let me pass on another warning about the approaching housing market disaster: I’ve have lots of questions about using gold as a hedge against whatever is coming.

Please listen carefully: Do not! Do not! Do not buy gold unless you truly understand it, which I seriously doubt anybody does!

Look at the charts linked below: every peak represents a person who’s won a fortune in gold investing at the right time.  But that subsequent valley represents an investor who’s lost a fortune in gold investing. If you think you can time the market you’re just flat out wrong. Many’s the speculator who bet on gold to hedge a collapsing economy and ended up as a net loser.

If you ever see that I’ve made a fortune in the gold market, then I give you carte blanche permission to tell everyone, “Ward cheated. He’s a liar. He’s a shyster.”

Betting on gold is worse than going to Vegas. Stay home. Pay the bills. Buy some emergency rations, enough to last your family for a few months. Don’t go nutty on me. We who are questioning the HOA debacle aren’t survivalists. (I have serious doubts that a survivalist can survive much of anything, anyway.) We’re just carefully analyzing an approaching disaster that every economist in the country is talking about… and puzzling over. There are just no clear answers. But I guarantee there’s a phalanx of con men out there being trained to take advantage of your fears.

(is gold really a good investment?)

http://www.telegraph.co.uk/finance/personalfinance/investing/gold/10019128/Is-gold-really-a-safe-haven-asset.html

 

Collapse! Collapse! Collapse!

While I honestly believe the approaching mortgage and housing collapse will be the biggest in our history, I still respect well-written satire of economic fatalists like me.

Yes, China might someday be the biggest holder of American homeowner debt, but in the meantime I’ll always be able to smile at such wonderful prose:

(how to survive the collapse)

http://www.marketplace.org/topics/economy/big-book/how-survive-next-economic-collapse