HOA late payment fine

[atxcio]

Originally Posted by PowerBolt

I am really frustrated on this issue . We are staying in Japan and this is impossible for us to attend annual meeting. I feel this is abuse and violence also this is too unfair to me . Without any notification they suddenly come to me and ask for penalty . Who is the one set this kind of rules to abuse cnsumer / house owner .... if I know this kind of abuse in advance i definitely won’t buy house in USA .... unfair.... unfair...

It's the State of Texas which sets the laws under which HOAs operate, which are NOT friendly to the homeowner. The laws favor big management companies who have lobbied the state politicians and are big donors to their campaigns. You can certainly complain to the governor and state reps for the area your property is in -- I wouldn't expect any relief, but at least you could help bring the bad behavior to light.

In the end, if you knew HOA payments were due, and you noticed they weren't being withdrawn from your account, then it was ultimately your responsibility to pay them another way. It is not reasonable to assume they were just gone, or there would be no consequence if they didn't receive their money. You could have sent checks via registered mail to the HOA. That way you'd have legal recourse to show you actually did pay.

Finally, if you are trying to manage an investment property in another country and a $700 bill due to a misunderstanding/error is too much for you to pay -- then that sort of investing is probably not a fit for you. Hopefully you were making a profit or cash flow, so it's just a cost of doing business and you can absorb the extra expense. I've owned rental property for 20+ years, and I understand that sometimes I've got to pay for an unexpected expense (like emergency/after hours repair or something) that I wouldn't have to if I were actually living there. I pay for it knowing I'm still making money and the renter is paying off the mortgage.

[CarnivalGal]

Originally Posted by PowerBolt

I am really frustrated on this issue . We are staying in Japan and this is impossible for us to attend annual meeting. I feel this is abuse and violence also this is too unfair to me . Without any notification they suddenly come to me and ask for penalty . Who is the one set this kind of rules to abuse cnsumer / house owner .... if I know this kind of abuse in advance i definitely won’t buy house in USA .... unfair.... unfair...

There WAS notification. When you bought your house, you were told how much your fees were and when they were due. You were also told what the penalties were for late or non-payment. It's no one's fault but your own for forgetting. Pull out your paperwork and read it. I guarantee you it's in there.

[PowerBolt]

Originally Posted by CarnivalGal

There WAS notification. When you bought your house, you were told how much your fees were and when they were due. You were also told what the penalties were for late or non-payment. It's no one's fault but your own for forgetting. Pull out your paperwork and read it. I guarantee you it's in there.

Thanks for your reply . Yes we know about HOA . 4 years we paid ours HOA on time by bank recurring . They changed a new HOA without notification. They send letters to my property however we are staying in Japan . Previous HOA know that we are not staying inside this property . We did email to previous HOA company but no reply from them . Suddenly new HOA company appear and force us to pay penalty US$ 800 plus

[TexasRedneck]

While I can understand your situation, it's ultimately YOUR responsibility to stay on top of your bills. You MIGHT be able to talk to them and come to an agreement on reducing the fines, but either way, it's on you.

[m1a1mg]

Originally Posted by PowerBolt

Thanks for your reply . Yes we know about HOA . 4 years we paid ours HOA on time by bank recurring . They changed a new HOA without notification. They send letters to my property however we are staying in Japan . Previous HOA know that we are not staying inside this property . We did email to previous HOA company but no reply from them . Suddenly new HOA company appear and force us to pay penalty US$ 800 plus

But you knew you owed an HOA fee that you were not being charged. You'd probably lose in court, unless you could claim some type of cultural misunderstanding.

[IC_deLight]

Look most of these management companies will lie, cheat, and steal to generate bogus fees that the management company will claim. It should be a crime for any HOA board to "agree" the management company is "entitled" to a "late fee" when the management company has experienced zero harm whatsoever. In the past, these management companies would come up with all sorts of excuses (e.g., "fines") and deliberately misapply your assessment payment in order to generate bogus "late fees". It was standard operating procedure with HOAs and it is still happening with condominiums.

The management company is not the HOA. What might have happened in your case is that the management company changed banks so that authorization you previously gave no longer works. You would be surprised that boards would be so gullible as to sign contracts authorizing the management company to change banks and even name itself as the owner of the account. The boards take advice from the management company and also from HOA attorneys that are in league with the management company. It's not surprising the contracts are very bad for the HOA and its involuntary members.

You can expect the management company is not actually going to talk to the board about waiving late fees. "Late fees" are a complete windfall to the management company. What you could do is check the restrictive covenants to see if "late fees" can be charged at all. If not then you may have an FDCPA or a Texas Finance Code violation you can threaten the management company (and HOA) with. Sometimes the management company uses the term "collection charge" - for not collecting.... In any event it is a windfall fee the management company isn't going to bother to ask the board to waive or reduce.

[rangergrit]

Well, the management company gets a windfall only if their collection costs are being reimbursed by the HOA. Filing liens costs money. Also, when the HOA negotiates the fee structure, there is lots of plus/minus items.

[IC_deLight]

Originally Posted by rangergrit

Well, the management company gets a windfall only if their collection costs are being reimbursed by the HOA. Filing liens costs money. Also, when the HOA negotiates the fee structure, there is lots of plus/minus items.

1. There is no "collection cost" associated with the mere passage of time. The management company expects a monthly late fee regardless of what the management company does. For many years the management companies would pocket the money with the HOAs none the wiser. Why do you think management companies lobby against homeowners having access to records?

2. If you find a management company filing liens please let me know and I'll sue them in a heartbeat. That's called the "unauthorized practice of law". It has always been unlawful for them to prepare and file these liens. To add insult to injury they would actually try to charge and threaten foreclosure for their unlawful collection practices.

3. There is little "negotiation" of fee structure. The board is advised by the management company as well as the aligned HOA attorney. The management company and attorney are part of the same trade-lobby group. The HOA isn't their client, it's the prey and so are all the involuntary members.