Category Archives: HOA

Do We Owe Them Anything?

Sherman McCray is 81 years old. He was an Army veteran who saw the brutality of the Korean War, but he fought because he thought it was his duty to protect the honor of his fellow Americans.

In the post-war years, he married the love of his life. When she died, he tried to build a life for another.  She, too, succumbed to the cruelties of age. A pension helped with some of Sherman’s expenses.

But over a period of years he began to feel the ailments and pains that take apart and disintegrate an old man’s life. After the heart attack and a gall bladder operation, there wasn’t much money left over.

One of the bills that arrived was from the Vista Homeowners Association in Orlando.  Sherman McCray says he tried to call the HOA lawyer to discuss the bill. But each time he did, another one hundred dollars was tacked onto his $339 dollar dues.

With collection costs, attorney’s costs, and 18% interest, the overdue amount rose into the thousands. The lien from the HOA said they planned to take his house. He just couldn’t understand how his entire life could be stolen from him over a paltry bill. In a hand-written note, he pleaded with the judge not to take away an old man’s home, one that he’d worked so hard to build.

The lawyers for the Vistas Homeowner Association essentially said, “it’s too bad. It’s just the way the law in Florida works.”

In a few days, the desperately ill 81 year old veteran will be kicked out into the streets where he’ll sit among a pile of his belongings. His old black dog will comfort him while he figures out what to do. His home will be auctioned off for a few thousand dollars to help fill the HOA’s treasury.

Mary Goldin, president of the Vistas Homeowners Association refused to come to the  door to talk to a reporter.

http://www.orlandosentinel.com/news/local/lake/os-lk-lauren-ritchie-home-foreclosure-20120122,0,6837576.column

Ward Lucas
Author of
Neighbors At War: The Creepy Case Against Your Homeowners Association

How to Crash Property Values in an HOA!

What if your HOA suddenly passed a rule that no member could ever convert his home to a rental?
Homeowners rent out their homes for many legitimate reasons: to stall for time until sales values go back up; to bring in some money while Dad’s is relocating to a job out of state. Some parents invest in homes near a college so a child can decrease living expenses by taking in a roommate.

Poorly maintained rental property certainly brings down values of nearby homes. But well-maintained rentals harm no one.
So, what’s the harm in outlawing non-owner occupancies?

We may soon find out.

The City of West Saint Paul has passed an ordinance that says no more than ten percent of the homes on a block may be used as rental property. It was adopted because of fears that banks would convert foreclosed homes to rentals instead of selling them.

Several questions come to mind: what protects neighborhood values more, a number of well-maintained rentals? or waves of foreclosed homes sitting empty waiting for an economic turnaround that may never come? And another: if you knew you were buying a house you could never convert to a rental under any circumstances, would that raise it’s value? or would you be tempted to low-ball the seller? And wouldn’t your low-ball purchase bring down ‘comps’ on all other nearby houses?

And a final question: would lenders be more or less eager to lend money to a borrower who might have to default because he could never rent out his home in a future emergency?

West Saint Paul, Winona, and any other cities with such bans, you haven’t just shot yourself in the foot. You’ve shot, re-loaded, shot, re-loaded, shot, re-loaded……..

Ward Lucas
Author of
Neighbors At War: The Creepy Case Against Your Homeowners Association

How Safe is Your House from Your Homeowners Association?

More than half of all homeowners in North Carolina live in covenant-controlled developments or Homeowner Associations. One of them is Becky Lew-Hobbs. She and her family owned a home in VillageLakes, near Raleigh. Becky admits the family got behind in their dues when her husband was out of work. But they tried hard to come up with the $1,143.89.

Suddenly, they were told they were being evicted from their own home and had FIVE days to pack up and leave. Becky says they were never notified that their house had been seized in a foreclosure action ten months earlier. That $1100 bill cost them their $160,000 home.

Members of Homeowners Associations don’t realize when they buy a dream home in the HOA, they’re not really buying, they’re in effect, leasing. In some ways, it’s like time-sharing. You think you are the sole owner, but you’re actually a partial owner. In an HOA of 100 homes, for example, a resident owns a 99% share of their home. But it’s the one percent that kills you. If you’re late on your dues, if you plant the wrong color flowers, or if you leave the trash can out an hour after the permitted time, 99 of your neighbors, for all intents and purposes, want you GONE! You don’t even get to talk to a judge. There’s no second chance.

Welcome to the new reality of Homeowners Associations.

Ward Lucas
Author of
Neighbors At War: The Creepy Case Against Your Homeowners Association

STOP THE PRESSES!!!

Well, at least it sounded cool, but I didn’t have the guts to say that to my publisher. I actually did want to hold off for a couple of weeks on my new book, Neighbors At War: the Creepy Case Against Your Homeowner Association. With all the embezzlements from HOAs, I’ve got a last minute update I’d like to make. I want to slip into Chapter 14 a $1000 challenge: a reward for the reader who can compile a verified list of the largest number of Homeowner Association embezzlements.

It’s really too tragic to be funny. But the latest case involves Kevin Douglas Harris, an HOA officer who pleaded guilty to embezzling money to buy himself some golf equipment. It’s the Hi Hill Village Homeowners Association in Orion Township, Michigan. Perhaps Kevin felt he was working so hard as treasurer, his neighbors sort of owed him a new set of clubs.

This theft was only for 6000 bucks. But still, don’t HOA homeowners get it? It’s too easy! Embezzling from Home Associations is out of control.

So, if my publisher doesn’t beat me to death with a tire iron first, here’s the deal: compile and verify the longest list of HOA embezzlements in any 365 day period. I’m the sole judge. If you win the money, I get to publish your research in my second book!

If we both do our jobs quickly, maybe our golf club embezzler will be able to read both books while he’s still on parole…that is, if he gets sentenced at all.

http://www.theoaklandpress.com/articles/2012/01/13/news/local_news/doc4f0f724e2c027029623300.txt

Ward Lucas
Author of
Neighbors At War: The Creepy Case Against Your Homeowners Association

A Conversation the Homeowner Doesn’t Know is Going On

“Oh. you’re moving into the neighborhood? I don’t really want to interfere with your attempt to lease or buy a home in this HOA. But I work for the government. And it’s my job to make sure the landlord didn’t make any misrepresentations to you when he agreed to lease or sell his home to you.

“For example, did the owner tell you whether the ratio of HOMEOWNERS to TENANTS was out of whack here?  Since renters have a reputation for not properly maintaining their homes, FHA loans and company reimbursements may not be available to anyone in the neighborhood.

“And did the landlord tell you that several people own multiple properties in this HOA? He didn’t? Mortgage companies don’t like to hear that, because if the owner defaults, he may do so on more than one property at a time. So this whole neighborhood could be redlined. You didn’t know that either?

“Ah, and one final thing. Did the landlord tell you that you, the tenant, could be hit up for special dues and assessments if the HOA’s kitty is underfunded? Yes, Real Estate law requires buyers and renters be informed about all possible defects before a contract of any kind is signed.

“Oh! You don’t want to live here after all? We hope we weren’t the ones who scared you off.  By the way, don’t tell the landlord we had this chat. Bye bye.”

Ward Lucas
Author of
Neighbors At War: The Creepy Case Against Your Homeowners Association