I’m no big fan of court decisions that favor big banks, in fact, I’m a bitter critic of some of the financial scams the big banks run. But the latest one in Nevada is no miscarriage of justice.
A lower Nevada court had ruled that investors in foreclosed HOA loans had a super-priority right to grab up a foreclosed house for a few thousand measly bucks, and cancel the loan the original mortgage company had given the homeowner. For a few thousand bucks you could just ignore the entity that loaned the original homeowner the half million it took to buy the home in the first place.
I despise crooked banks, I’ve been personally victimized by a crooked bank. But still, the phrase ‘due process’ is woven into our Constitution. And due process is supposed to be accorded equally to all citizens and all corporate entities.
The decision by the 9th Circuit Court of Appeals will obviously be challenged. The 9th Circuit is famously the most liberal Court in the nation and overturning 9th circuit decisions is almost pro- forma for lawyers. So it’ll be interesting to see what direction this decision goes. With a 4-4 tie in the U.S Supreme Court the whole matter could boil down to which Presidential candidate comes out on top three months from now. If this decision is delayed by the lack of a deciding vote by the High Court’s pending 9th member it very well could stand as is.
(link to Las Vegas Review-Journal story on overturning of Super-priority lien)
I’m really good, aren’t I? I should go into business as a professional psychic! Just a few days ago in a blog post headlined, “Fire That Reporter, Judy Thomas,” I predicted that the powers-that-be would come down like a sledgehammer on the reporter who wrote the fantastic HOA series in The Kansas City Star.
It’s starting, just like I said it would. Linked below is an internal column by the Community Associations Institute, (CAI). It’s so typical of the rank distortions by CAI whenever they refer to homeowners rights advocates. The KC Star’s series was not only incredibly accurate, but it was also fair and balanced. The national Homeowners Association scam is so far out-of-control that a typical reaction to the phrase, ‘homeowners association’ is a couple of raised eyebrows. It’s hard to find a single person who hasn’t heard horror stories about HOA life.
The more you learn about CAI, the more you learn to distrust anything they say. In fact, CAI should really change it’s name. The acronym, ‘CAI,’ sounds too much like ‘lie.’ I’m open to suggestions but I kind of like HOAs-For U. That makes for an even more accurate acronym.
(link to CAI column blasting Kansas City Star series)
Wow! All of a sudden it seems like HOA media coverage has exploded! A raindrop here and there, and all of a sudden a thunderstorm!
HOA aficionados, lawyers, liars, and HOA organizations that perjure themselves while testifying in State Legislatures continue to complain that true HOA problems are so rare they don’t merit attention. Rare, indeed! The rare HOA is one that DOESN’T have problems.
Get it, folks? HOAs are universally as fascist as they are incompetent. Bullies run for the board. They get elected because homeowners have been bullied into submission and don’t even dare to attend the meeting and vote. Once a bully is in power, the testosterone gets released.
I’m linking to comments on Reddit from people who’ve been screwed by the lawn Nazis in HOAs across America.
(link to readers’ comments on a Reddit post)
One of the most articulate and intellectual bloggers in the homeowners rights movement is Deborah Goonan. A critically important recent column of hers is one that’ll be overlooked by most of us, the so-called Housing Opportunity Through Modernization Act. It would force the FHA to ease regulations on mortgage financing for those buying condominiums. On the surface it sounds like a great thing, lowering down payments, reducing the mandated number of owner-occupied units.
But beware! We don’t know what the exact timing is, but there’s a mortgage/credit bubble headed our way that will make 2008 look like a walk in the park. Not a single banking expert is predicting otherwise. All it takes is for one branch to break and the whole tree will fall. Many expect the troubled Deutsche Bank to be the first to fall. Others think the controversial Presidential election cycle could be the trigger.
Regardless of your political persuasion, this is a dangerous time for homeowners, investors and virtually anyone trying to support a family. This bill had unanimous support in the Congress and Senate. But read Deborah’s column. Make your friends read it. And hold your breath because things are going to get interesting.
(link to Independent American Communities column on HOTMA)
The ripples from the investigative series in the Kansas City Star continue to move across the nation. Editors at many major newspapers are undoubtedly kicking themselves for not diving into the story earlier. Beleaguered homeowners in out-of-control Homeowners Associations who’ve been victimized by the local lawn Nazis are feeling a bit of satisfaction that someone in the newspaper industry is finally looking their way. And some HOA bully boards may be looking behind them to see if investigative reporters are shadowing their activities.
Lord Acton famously said, “Power corrupts, and absolute power corrupts absolutely.” Supreme Court Justice Louis Brandeis said, “Light is the best disinfectant.” The very structure of the modern Homeowners Association creates a system of absolute power. And only by opening up that corrupt and secretive HOA structure to public inspection will homeowners begin to reign in the abuses and financial corruption of a huge number of the nation’s HOA neighborhoods.
The editorial in the Kansas City Star is worth reading, although those of us in-the-know recognize that it doesn’t go far enough. Legislative control? Yes. It’s necessary. But a complete ban of these phony non-profit HOA corporations is the only way to truly restore Constitutional rights to tens of millions of homeowners who inadvertently signed them away.
(link to HOA editorial in Kansas City Star)
