Banks and Assessments, Unwritten Rules

Banks and Assessments, Unwritten Rules

Kelly, I have a serious question for you. I will quote to you a paragraph from the [HOA’s] Newsletter:  “SERIOUS FINANCIAL PROBLEMS: Several homeowners are being foreclosed on therefore the association is losing money. …. The budget is seriously impacted and there will have to be a fees increase or a special assessment to cover these losses.”  Why are the current homeowners responsible for foreclosed properties and not the lenders or banks that have foreclosed on the properties? How can they legally collect from the current home owners and not go after the banks or lenders that now own the property? Thank You,  K., Baldwin Park Dear E.K., If a member defaults on their obligations to the HOA as well as their mortgage, the HOA’s lien is wiped out when the bank forecloses. The association still usually has the option of pursuing the homeowner for a money judgment, unless it has completed its own foreclosure against the residence. Associations should not wait to pursue delinquencies, because the deficit comes out of the pockets of the remaining good paying neighbors. Banks which foreclose on a HOA residence are not liable for any assessments until the bank becomes the owner. However, if after foreclosure, the bank does not keep the ongoing assessments current, the HOA can and should pursue the delinquent bank the same as any other member. There is a way to protect some part of the HOA’s lien from bank foreclosure wipeout. Per the Community Associations Institute 19 states have passed “super lien” laws, in which a number of months of assessments are protected from foreclosure, Florida most recently. Should...
Pets, Corporate Suspension, and Borrowing from Reserves

Pets, Corporate Suspension, and Borrowing from Reserves

Kelly, I read your article in the paper and am curious about how many dogs are allowed in a town home? My next door neighbor has 4 large dogs. Sometimes they howl when no one is home. If the yard is not sprayed down daily since it is concrete, the smell is horrible. My association doesn’t seem to want to do anything. They want us to send emails to them and then that way the neighbor will know where its coming from. We have already talked to the neighbor about smells for years and they apologize & clean up for a while but then it eventually gets bad again. I just think 4 big dogs is not right in such a small area. I don’t think this should be up to us to take care of. J.S., Mission Viejo Dear J.S., Your HOA documents may not have a limit on the number of pets, but a basic neighborly responsibility is the avoidance of nuisance. Neighbors must take steps to avoid smells, noises or other matters which rise to the level of unreasonable interference with normal living. Associations struggle with issues primarily involving just two neighbors, and boards should be cautious about deciding which of two neighbors is reasonable and which is not. You could “lawyer up” and spend a lot of money destroying the relationship between you and your neighbor. On the other hand, you could continue to do what you are doing – continue in contact with your neighbor, reminding them that this is an ongoing focus. No easy answer here, except the best resolution is old fashioned...