Article Contributed on: 1/16/2009 2:43:18 PM
What could possibly go wrong in that picture perfect community you are thinking of buying a new home in? If one is asking that question as regards buying in a housing development that is a common interest community (CID) and/or has a homeowners association (HOA) connected with it, the answer to that question is, "almost anything."
If an unwary home buyer is unfortunate enough to buy a home (or property) in an HOA or CID, it certainly appears that he must then learn, early on, to
never question any member of his association's board of directors or their attorney (who may be a member of the Community Associations Institute (CAI) as well as a state legislature lobbyist) about anything.
Why?
Because the experiences of many millions of HOA homeowners all over our country tells us that many, if not most, HOA board members and their (often) CAI attorneys, don't like being factually questioned by homeowners about their HOA decisions.
And worse, if a homeowner persists in trying to get at the truth about [fill in the blank] in his HOA, he may, probably will, end up being sued by his HOA with the result that he will most likely lose thousands of dollars of his hard-earned life savings, as well as everything he owns -- including his HOA home. However, he may --
MAY -- if he is very lucky, escape his HOA with literally the clothes he is wearing at the time he is evicted from his home during foreclosure proceedings.
In other words, when one owns property in an HOA, one must very quickly learn to "pay up and shut up" if one wants to remain financially solvent.
The author of the article below asks: "Why add to your financial risk by buying into any type of HOA laden housing that's a magnet for lawyers?"
Good question! Most law-abiding, intelligent, and rational folks who have ever lived in an HOA, or live in one now, will answer that question by suggesting that a home buyer avoid all CID and HOA housing like the plague.
Jan
http://www.ahrc.se/new/index.php/src/news/sub/article/action/ShowMedia/id/4724
The American Homeowners Resource Center (AHRC)
An Article
A FEW HUNDRED SQUARE FEET OF HOA HELL
January 09, 2009
By Jenny Wong
Copyright Jenny Wong
Alhambra, California -
Imagine the following scenario:
"Awwww C'mon honey....what could possibly go wrong. It's a small HOA with just a few hundred square feet of common area at the entrance. The dues are only $100.00 per year. They have a few rules about fencing, roofing, and maintaining that small front entrance so it should be no big deal. It's not like those gated communities."
Famous last words - what could possibly go wrong? Good question. The answer is anything and everything. What could go wrong depends a lot upon the character of the Board of Director neighbors at the helm, every single neighbor that lives there, their friends, their visitors, and any and all people who tread upon those "few hundred square feet".
Mr. and Mrs. Joe Homeowner decide to go ahead and purchase. Sure enough, all is quiet on the western front entrance. Every now and then a young man mows the lawn, prunes the bushes, cuts the grass and whatever else you need to do to maintain a few hundred square feet of landscaping. $100.00 per homeowner per year seems to be covering MORE than enough.... and then some. The neighbors are friendly, there are a couple of homes where yard maintenance has a lot to be desired but the "good" thing is, the HOA Board of Director neighbors don't seem to be Dictator types and it surely isn't enough to get riled up over so they leave well enough alone. There are a few neighbors who aren't paying all of their mandatory maintenance dues but they are elderly, so they too, are left well enough alone. So be it. Let's all "love thy neighbor". That's the way we like it.
Suddenly, this perfect little utopic neighborhood has turned myopic. A flyer arrives on the doorstep. The first few lines of the flyer read .... "We regret to inform you that our legal fees are climbing to upwards of $50,000. This will impact each and every homeowner. If you can't pay, your home could be liened and even foreclosed on. Interest and legal fees may also accrue to collect this debt...."
You see. the HOA is deeply entrenched in litigation. The seller never said a word. Neither did the realtor. It doesn't matter. YOU, Joe Homeowners, are responsible. Sure you could try to sue the seller or the realtor for failure to disclose, or file a complaint with the Department of Real Estate. Ha, good luck. That's like chasing bad money with bad money and that's assuming you can afford the chase.
One lone homeowner decides to question the board on a few legalities such as whether or not the HOA is a valid one and requesting to see the recorded documents and the financial books and records. The homeowner is more than a little curious about how it can cost nearly $10,000 per year to maintain a few hundred square feet. Well, the HOA Board of Director neighbors are offended by what they perceive to be an "interrogation" by Joe Homeowner. They dig their heels in and won't give up the goods.
It's been down hill ever since. The lawyers step in and sniff out every conceivable other issue to dig up, using fear mongering tactics with the HOA Board that they better do this or they better do that. They plant the seed of fear in all the homeowners to immediately consult their own lawyers. Several years later and $50,000 later, nothing is settled, and they are preparing to have a trial. Yep, a trial. Over a few hundred square feet of common area.
The dirt in homeowner associations is much deeper than the pretty little Roses and Tulips on the surface. The grubworms that lurk beneath the surface of HOA laden housing can surface at any moment and begin their dirty work of eroding neighborhood spirit. In time, that may return. But some homeowners may never be able to recover from the erosion of their hard earned equity and life savings once it's all been depleted.
Isn't it enough that we live in such a litigious society, filled to the brim with litigation lovin' lawyers? Or that many homeowners are already struggling to make their mortgage, let alone their skyrocketing HOA dues? Why add to your financial risk by buying into any type of HOA laden housing that's a magnet for lawyers? Keep in mind, every single home in an HOA is collateral to those lawyers. Do your homework - no pun intended - flunking in this class of housing could leave you homeless.
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View Comments about the above article and/or Post a Comment about it at the above-mentioned url.
For more information about HOA Hellholes, please check out the articles listed below (authored by Ann Roth, an experienced HOA homeowner advocate and HOA homeowner) by clicking on the above-mentioned url.
STOP THE MADNESS! REPEAL THE LAWS - Ann Roth
YOU ARE NOW LEAVING THE AMERICAN ZONE! - Ann Roth
THE GOLDEN FEARS OF HOA YEARS - Ann Roth
THE FLIP SIDE OF "DISCLOSURE" - Ann Roth
WHO WILL HOUSING CONSUMERS ELECT FOR CALIFORNIA GOVERNOR? - Ann Roth
BEDROOM COMMUNITY OR CORPORATE BOARDROOM? - Ann Roth
HOA HOMEOWNERS - A PAWN IN THE GAME OF HOA LIFE - Ann Roth
AAHHH.....WHAT A PLEASURE ....DIVERSITY! - Ann Roth
HOTEL, HOMEOWNER ASSOCIATION OR HOLIDAY INN? - Ann Roth
IF YOUR HOME IS IN A HOMEOWNER ASSOCIATION - YOUR EQUITY IS AT RISK - Ann Roth
"HOW TO FIGHT A HOMEOWNER ASSOCIATION" - Ann Roth
THE HOMEOWNER ASSOCIATION DE'MOCK'RACY - Ann Roth
CALIFORNIA HOMEOWNER ASSOCIATION OMBUDSMAN - Ann Roth
Who's Who in the California Homeowner Association Housing Industry? - Ann Roth
HOME FOR SALE! - Ann Roth
A CAR ON BLOCKS? - Ann Roth
DISSECTING THE CONFUSION - Ann Roth
SPROUL ON THE PROWL! HOMEOWNERS BEWARE! - Ann Roth
NO HOA'S! Really? - Ann Roth
COMPLAIN ALL YOU WANT.......Cuz It Ain't Gonna Help - Ann Roth
HIS MAJESTY - THE MAJESTIC OAKS HOMEOWNER ASSOCIATION - Ann Roth
EMINENT DOMAIN BY HOMEOWNER ASSOCIATIONS - Ann Roth
THE BROTHERHOOD OF THE BOARDS - Ann Roth
THE 'L' WORD - Ann Roth
THE MAJOR - Ann Roth
JUDGE ADMONISHED? ASTONISHING! - Ann Roth
MERRY KWANSMAS and HAPPY BUDDHUKAH - Ann Roth
HOA HACK!! - Ann Roth
JUDGE ADMONISHED? ASTONISHING!! Part Deux.... - Ann Roth
Homeowner Association Post Traumatic Stress Disorder - is it real? - Ann Roth
HOMEOWNER ASSOCIATION'S FESTER COMMUNITY - Ann Roth
The 2007 "Common Interest Developments - Homeowner's Guide" is now available. - Ann Roth
THE "HOAusing" SLUMP? - Ann Roth
SOWING SEEDS OF HATE? - Ann Roth
Protecting Freedoms on the "Home Sweet Home" Front - Ann Roth.
FREE SPEECH UNDER ATTACK IN AMERICA'S HOMEOWNER ASSOCIATIONS?? - Ann Roth
"Corporate, America." - Ann Roth