Tag Archives: HOA Nightmare Stories

Board Members Sell Out And Get Out!

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guest blog by Nila Ridings
  
What do Walt, C.J., Bill, Molly, Pat, Porter, Vern, and Tom have in common? They were all HOA board members. Shortly after serving on the board or while on the board they sold and got out!  Could that be because they had access to records and information about lawsuits that the ordinary HOA “pariah” didn’t?  Could it be because they saw the “light” on this dilapidated HOA and all of it’s failed plans and programs?  Or is it because of the million dollar debt?
 
Whatever the reason, it does make a difference when you have access to “insider” information.
 
When a “pariah” wants to see HOA records they must make the request and pay by the hour to examine them.  A “pariah” has to pay additional copying fees for each page.  They don’t know how many lawsuits the HOA has filed or how many have been filed against the HOA.  They don’t have a say in whether the board borrows $1,000,000 on a line of credit… and then agrees to pay the property manager 10% of it as some sort of “finder’s fee” or “management fee” on top of the hundreds of thousands per year he’s already collecting.
 
What seems to have been “brushed under the rug” in a majority of HOAs is the fiduciary duty that a board member has to the homeowners.  What happened to that?  Is it just some unheard of and forgotten obligation that board members routinely ignore?
 
And how have these board members managed to get thousands of dollars worth of work done on their units before selling them?  While the neighborhood “pariahs” have work orders that collect dust for years.
 
I’m going to offer up this piece of advice for whatever it’s worth to our readers. If your board members are heading out the exit…you should, too.  Pay close attention to the real estate listings in your HOA.  Check the addresses against your county records for owners’ names.  Board members’ properties listed for sale could be a sure sign something is rotten in the HOA!!!
 
“Pariah” was used in an HOA newsletter by the HOA president to describe homeowners who insisted the dues be used to repair their wood rotted houses as opposed to having the clubhouse completely redone.  Since the clubhouse is rarely rented anyway, that project made no sense when the exterior of the houses was rotted so severely there is frame damage.  But the board president decided to self-deal the clubhouse redo through her personal “decorating” company. And the HOA newsletter (it was learned in court) is printed by her “publishing” company!  Which was how she justified pocketing all the advertising dollars from the ads that paid for the newsletter…and the profits became hers, too.  Another one of her self-dealings!  Her “pariah” newsletter was presented in front of a judge and jury…it most definitely helped the homeowner win all counts of the lawsuit.  Hooray!  Just another reminder you just can’t fix stupid!
 
Oh yes, and imagine this…the state has NO RECORD of her owning a decorating or publishing company. How many 80 year olds do you know who have the energy to own and manage two flourishing businesses that “cater” to the HOA while being president of the HOA? Since she’s been exposed she uses her middle finger to express her displeasure to her neighbors.  Nope, she’s not even a classy old lady!

What a Hoot! WARD LUCAS IS HATED IN ILLINOIS!

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Ya know something? God has a sense of humor!

I just got an email that in a contentious HOA meeting in Westmont, Illinois, a CAI attorney was giving a seminar on Homeowners Association law. If I understand her story correctly, she and another homeowner stood up and waved copies of my book, Neighbors At War! at the CAI lawyer and the crowd. She says the lawyer turned away in disgust.

There’s no question I’ve been very critical of both the CAI and the Illinois Supreme Court which has made some really bizarre rulings this past year. The latest ruling is that your contract with your HOA isn’t really a contract. Well, sometimes it’s a contract. Sometimes it’s not. If you withhold your dues because they won’t repair the roof, then it’s not a contract. If your unit leaks on the HOA president’s unit, then it’s a contract. {HEAVY SIGH}

Anyway, hearing that angry homeowners are waving my book in the faces of members of the HOA industry just gives me a warm feeling in my belly. It’s a movement, folks! It’s a movement! It starts off with little protests like this, and then grows into a small roar. Suddenly we’re a force of nature not to be trifled with.

Keep it going!

 

Don’tcha Just Love It!

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I forget which country singer delivered that line, but I do want to pass along some lines to readers of this blog.

There’s another good article on the national HOA scam that’s making its way around the country. This one is published in Naked Capitalism and it discloses what I’ve been saying for years: Homeowners Associations DO NOT protect your property values!

In fact, the column by Yves Smith says while the national housing market is improving, the HOA market is going the opposite direction. Improper foreclosures, declining revenue from dues, underfunded reserves are slamming residents of Homeowners Associations.

And yes, more and more Americans are learning about HOA Amerika. My ongoing prediction: Things are going to get a lot uglier on the HOA side of the wall.

(link to Naked Capitalism story)

 

Condo Fires In The Past 90 Days

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guest blog by Nila Ridings
 
The new year is not off to a good start for Ewing Township, Dallas, Branson, and Boulder.  Condo fires have left them with injured firefighters, displaced residents, and causes unknown. 
 
It is time to discuss fire safety in your home, condo, townhouse, or any other abode.
 
1 ) Do you own fire extinguishers?
  
2 ) Do you know how to use them? 
 
3 ) Are they stored with fast/easy access? 
 
4 ) Have they been checked by you or professionals? (see the video in the link below)
 
5 ) Do you have working smoke alarms with good batteries?  Are they tested monthly? 
 
6 ) When house guests visit do you show them where the fire extinguisher nearest their room is located?
 
7 ) Do you move the BBQ grill away from flammable surfaces and keep an extinguisher nearby?  (see link below for helpful hints)
 
8 ) When you stay in hotels do you make a note of where the fire alarm is and how many doors you are from the stairwell exit?
 
9 ) Do you know to NEVER throw water on a grease fire?  Use flour, baking soda, or smother the fire with a towel. 
 
People who do not have a fire extinguisher or know how to use one panic at the sight of smoke or flames.  It’s best to know how to fight the fire than to run around screaming.  Or grab your cell phone and start filming as some of these condo residents have done.
 
Many local fire departments will come out and change smoke detector batteries for you.  Check with yours if you need some help.
 
Last but not least, the link below offers information on buying an insurance policy for your condo.  There is a difference between condo and homeowners insurance policies.
 
In attached housing we can quickly become victims if our neighbors lack concern for safety.  Who knows what chemicals they may be storing?  Or how often they fall asleep with a lit cigarette.  Which ones leave their laptop computer on their bed all day which can cause the battery to ignite?  Lest we forget the ones that have saved newspapers and magazines since 1962 and then stack them to the ceiling.
 
With all this risk for fire it would make sense that sprinkler systems should have been mandatory to obtain building permits!  Oh wait…THAT would have taken money out of the developers’ pockets and raised the sales cost on the units.  
 
Money versus Safety.   Money always wins.
 
 
 

Last Call…Who Gets Stuck With The Condo?

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guest blog by Nila Ridings

Occasionally I talk with a condo or HOA homeowner who tells me they are working to pay off their mortgage so they can leave the property to their kids debt-free when they die.  None of us knows when we are going to take our final flight, but we all know the risks of owning in a condo association or HOA.  For those who don’t, I’d suggest spending time on this website and reading Ward’s book, Neighbors At War!
 
I’ve watched the results of this plan play out over the past few years.  When heirs live out of state they sell for whatever they can get or turn their new property into rentals.  Rarely, do they move into the unit.  And they have no clue what is going on inside of the HOA , who is running for the board, how many lawsuits are pending, or if the HOA has taken out a million dollar loan.  They’re clueless and have absolutely no interest in knowing more.
 
If they can’t get the property sold and don’t want a rental, they are stuck paying monthly dues to the HOA. While there is no water, sewer, or trash usage during that time the HOA bill continues, along with taxes and insurance.  If at some point the HOA slaps a lien on the property there is an amount to be paid that nobody knows about. Or, the lien was satisfied but the HOA never released it.  Possibly the deceased wasn’t aware of it, but it’s there and it has to be paid before the place can be sold.  Or an assessment pops up and heirs are on the hook to pay that, too.  Suddenly, this inherited real estate becomes a pain in the neck and/or a financial burden to someone who can’t afford the extra expense or deal with all the added stress.
 
We learned in Neighbors At War that mortgage-free HOA properties also become targets for non-judicial foreclosure.  Since corruption never misses an opportunity the dead are not exempt from HOA abuse either.
 
During a recent conversation with an HOA property owner I learned something that I expected was coming.  This individual wanted a reverse mortgage only to learn that isn’t possible because the HOA is not FHA approved.  The advice given was to take out the maximum amount in a mortgage, enjoy life with the money, and when the money runs out or the final breath is taken, the kids can let the property go back to the mortgage company and walk away.  If the HOA opts to foreclose, so be it. (Who needs a good credit rating to get into the cemetery?)
 
Bottom line is: hundreds of thousands of dollars tied up in a covenant controlled and often times corrupt HOA is not a way to leave your heirs feeling loved.  It could bring them a financial burden that could drastically change their lives and leave them feeling angry with you for leaving them in such a financial mess.
 
No one lives without dying.  Careful thought should be given to how we wish to be remembered.  Hopefully it won’t be that generations to come are left sitting around holiday decorated dining room tables discussing Mom and Dad or Aunt Matilda’s HOA nightmare that was “supposed” to be an inheritance!