Tag Archives: HOA Abuse

What Happens If HOAs Can Affect Your Credit Score?

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guest blog by Nila Ridings

At various times, I have heard the discussion of HOAs having the ability to report delinquencies in HOA dues to credit reporting agencies. The link below offers some excellent information about the importance of having excellent credit. It also brings to mind the additional risks of owning in an HOA.

For example: Numerous times in my growing up years, my dad told me to never co-sign a loan for somebody. He would not be proud to know I listened to him and never co-signed for a friend’s loan, but I did co-sign to pay the debts of 512 of my neighbors! That’s right. Buying in an HOA puts every homeowner in a position of being the guarantor on all debts, loans, lawsuits, settlements, construction defects, and disaster rebuilds. That makes co-signing for a car loan for your recent college-graduated kid brother seem like small potatoes, doesn’t it?

According to this article, a bad credit score can prevent you from getting a license to practice medicine, law, and other professions. Hypothetically, let’s say grandma gives you the gift of a down payment on a condo so you have a place to live while you go to medical school in Boston. And you leave your trash can out twelve hours too long because an emergency happens and you stay to help at the hospital. So, the HOA fines you $100 for the trash can violation. You refuse to pay it. They tack on another $2,000 for the attorney to send you a letter demanding the money for the fine. Next comes interest, more legal fees, and on and on. If this HOA had the power to report to the credit reporting agencies you could graduate from medical school, pass your boards, but still not be issued the license to practice medicine! All because of one day when you were trying to help save lives you didn’t make it home to put the trash can away by the deadline.

If I shared this scenario with a non-HOA resident they would most likely laugh and say that is insane!!! But for those of us who live in HOAs we know all too well this could very likely happen.

I think it makes yet another good point why HOAs should never have the ability to affect the homeowner’s credit. Not to mention so many of these HOAs have such poor financial record keeping.

For example, I talked to a neighbor a few days ago. He told me our HOA has gotten a judgement for back dues against him. He asked for a ledger so he could see what charges they have applied. They told him they do not have one, but would try to get it from the property manager. The property manager said they do not have one, but maybe the previous property manager has one. The only thing anybody seems to have is a total amount he owes. In the past, he has owned a business and finds this insane that nobody can give him a detailed ledger of the charges. I agree with him, it is insane. And he is at the mercy of them to pay what they demand because his house is being held hostage with a lien. What would happen if they could also destroy his credit rating?

Clearly, too much power would be in the hands of the totally incompetent. There’s no limit to the destruction they could cause to homeowners in HOAs!

America, please wake up! Please stop pretending that HOAs are some sort of fun-loving living paradise! Please stop building these horrible nightmares! And please prevent them from EVER having the authority to report to the credit bureaus!

(link to column about credit scores and how they can impact you)

 

 

Drought Arrogance in Bel Air, California

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Ah, the arrogance of those Los Angeles elites.

CBS-LA reports that one homeowner in the ritzy Bel Air area used 12 million gallons of water in a single year during the worst drought anyone can remember. TWELVE MILLION GALLONS! The water bill was 90,000 dollars.

I have no idea what it costs to fill an Olympic sized swimming pool, but I would bet you could fill a swimming pool at least once a week with that budget.

The real stench, though, is that public officials won’t release this person’s name or address “for privacy reasons.” This one homeowner needs to be targeted and his name and address publicized. With a drought so severe it really threatens our national stability (agriculture), there’s no need to respect privacy. Drought shaming. Someone should do it.

(link to story on 12 million gallon ‘star’)

 

 

Georgia Homeowner Told To Narrow His Driveway

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Just because you got permission years ago to modify your home, don’t count on your HOA to respect the past. A Georgia man is learning that the hard way. He squeezed three cars onto his driveway, and management company paid attention.

Ralph Isabella says he got board permission six years ago to widen his driveway. It was all fine and dandy until Isabella cleaned out his garage and temporarily parked the cars outside. Suddenly, the HOA says if Isabella doesn’t take out the new pavement they’ll narrow his driveway for him and sue him for the cost.

The Copper Springs HOA, Oakwood, Georgia.

Nice folks.

(link to story in Gainesville Times)

 

A Long Read, But Worth It!

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Many years ago I read a hilarious article By Bill Vaughn in Outside Magazine. It’s not about Homeowners Associations, per se, but it’s a fantastic story about living with crappy neighbors. I re-read the story about once a year just to keep my spirits up. Now I want to share it with you!

http://www.outsideonline.com/1819496/wontcha-be-my-neighbor

A Must-Read From Las Vegas!

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Long-time readers of this blog know that the most corrupt Homeowners Associations in the country are in Nevada. We know that from the 41 or more organized crime racketeering convictions earlier this year in Las Vegas. Just as I predicted, despite the tens of millions of dollars in losses all but one of these HOA mobsters got less than 18 months in federal prison.

That being said, there are some shining lights of honesty in that area. Dr. Gary Solomon, Jonathan Friedrich, Colonel Robert Franks among others. Sadly, the corruption is so rife within the Homeowners Association movement that the system works hard to stomp out those who sacrifice to help others.

Today, Bob Franks sent out the following letter to explain to his legions of admirers why he has to step back in the fight for homeowners’ rights:

My appointment to the HOA Commission is completed. I did not request
reappointment for a normal 3 year term. So, I can now move on with the
satisfaction that CICCH Commission records show I did my best to make a
difference on behalf of unit owners.

Regretfully, the record shows that legislative and executive branch
authorities do not appear to want the CICCH (HOA) Commission to
effectively perform its statutory mission on behalf of all home
owners. It is under the tight control of industry and government
interests–to the serous detriment of unit owners and other occupants.

The record of the past decade shows that well over 95% of unsettled law
violation complaints filed with the state by unit owners against HOA
boards and licensed managers are summarily dismissed by the state. The
division does not have to show or defend the merits and results of its
secret, multi-year investigations with board presidents and their
attorneys. The division’s dismissal decisions are not subject to
anyone’s review or dispute unless high cost civil lawsuits are
initiated. This is gross injustice for unit owners. Imagine if the
courts only tried 5% of the valid complaints filed with them?

The less than half a dozen cases out of hundreds filed each year that
are actually prosecuted under the administrative statutes by the
Attorney General staff to the CICCH Commission always reflect high level
criminal violations as well. But, criminal investigations and
prosecutions never seem to get prosecuted. HOA and Condo unit owners
are losing many millions of dollars due to known criminal violations
every year and the government is failing to do anything. This knowing
and willing failure of justice for HOA owners is a true outrage for our
state.

The Real Estate Division is also not subject to any kind of outside
oversight of its decisions that almost always favor the boards and
licensed managers. This means the Division is given a blank check by
the Legislature to continue to hide its apparent misconduct and denial
of homeowner justice.

As a result, HOA owners currently have no viable paths for demanding and
expecting to receive citizen property rights protections from the
abusive industry and state/local government controllers.

Unfortunately, it now seems clear that a large, Nevada grassroots
organization and legislative caucus must be formed to represent
aggrieved property owners against the combined business and government
power blocs. The consequences of doing nothing can create a continuing
blight upon the previously attractive Nevada home markets.

Regards,

Bob
Robert Frank, Colonel, USAF (Ret.)

(Bob Frank’s LinkedIn address)