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I don't see how this HOA is being "pradatory" either. As others have said, you know certain bills have to be paid and you are responsible even if you don't get a letter.
I, for one, am glad to be in a voluntary HOA. All they do is pay to mow the lawn out in front of the sub-division sign and replace the lights around the community.
In order for a property to be foreclosed in NC, the court has to be involved. NC Law says this about notice. The notice must be sent by first‑class mail to the property address and, if different, to the mailing address for the unit owner in the association's records. Foreclosure can begin after 30 days overdue.
So the association is only responsible for sending notice to the property and to the owner's address on record. Generally they will send notice to both. The owner has the right to pay all the over due stuff within 15 days to stop the foreclosure. However in this case the owner contends he didn't get the notice because the association screwed up. Association decides to foreclose. Maybe they decided this is needed since 90 days passed and have heard nothing, and owner never even tried to find out why he wasn't getting bills.
Assuming the association and owner can't work it out and the association decides to proceed with the foreclosure then what happens is this. Notice is sent to all parties of interest on the property about a foreclosure hearing with the clerk of court. If the owner shows up at that hearing and offers to pay all overdue items, court costs, and late fines, the clerk will probably dismiss the foreclosure. They have no interest in clogging up the courts with unnecessary work. But the clerk also has to listen to the creditor (association) and may decide the other way depending upon the argument. Both sides have a right to appeal this decision to a real judge and that will be heard in the next court cycle.
Assuming all appeals fail and court orders foreclosure, then notice of sale is posted, and sherriff proceeds with foreclosure auction at court house. High bid wins. Proceeds from sale are used to pay creditors. Law dictates order. Normally mortgage company, if there is one, will show up and bid amount of outstanding balance to protect their interests. Winning bidder is new owner and original owner has no rights to property. Sherriff can be ordered to remove occupants if needed.
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So bottom line is there are still several opportunities for owner to halt the foreclosure. Probably the most important is to contact the association and offer to pay up everything. I can't imagine they would want to go through that process if they don't have to. If that fails, then your next chance is to argue your case with the clerk of court. If you pay up all expenses then I can't see where the clerk would turn your down. If that doesn't work, then your last chance is with a judge.
Yes, they can foreclose, but, in this market, that is plain stupid.
I would agree with the other poster that said that you knew the dues were there, not having received the bill is not an excuse not to pay them.
Pay the dues. That will stop the foreclosure. Simple.
NOTE: I am not a fan of HOA's overall. Really think that they should be banned. But, this case is really not the fault of the HOA. The dues exist. They need to be paid. Unless something else is in place, that is the way that it is.
Sorry about the misinformation. In Florida there is homestead, which protects a homeowner from losing their home in lawsuits or being foreclosed by anyone other than a lender. You can be liened up the wazoo so when you sell the home the creditors will get their money. Earlier this year I was combing the NC statutes for information on inheritance taxes and I thought I saw something about homestead and therefore assumed. Won't do that again. My husband thought the same and since no one has had even a lien put on a home here in our development it has not come up in their discussions.
And yes there is no excuse for not paying the dues. You know they are owed so it is on you to pay them just like you pay your other bills. I don't understand though why they would foreclose for such a small amount of money. and take on the responsibility of the house. But every HOA is different which I am glad I live in mine.
Again sorry. Will keep mouth zipped unless I know all the facts.
thinking in a logical sense, if the hoa forecloses, that means they own the house. that also means they own the debt to the bank, who will definitely want their money. if you are upside down on the house (for example, if you owe the bank 100k on a house that would sell today for 75k), then the hoa would be responsible for paying the bank the remaining 25k. doesn't seem too bright to me.
check out the above link and related links for info on foreclosure stuff here in NC.
unless, after reading the stuff on the links, you are in the mood for a good and messy fight, i would just send the 300 and be done with it. then i would flag my accounting software to notify me that certain bills are due at certain times and pay them with or without a bill. i pay a lot of bills online 10 days before they are due whether or not i have a bill from them. then i have the software and bank trace the payments so i can see if the payment actually made it to the right place.
in most cases, HOA board members are not property managers. the management is done by a company hired by the HOA, but cannot do anything without approval by the HOA. it is the managements responsibility to make sure addresses are correct, bills are sent to the right place, etc etc, and if they screw up it is on their head. they work for the board, not vice versa. if you know anyone on the board, maybe contact them.
at any rate, contact the property manager or hoa in writing. even with a phone call, follow up with at least an email so you have some tangible evidence if you should need it.
Sad to say it, but one of the rules you gotta live by in this day and age is:
Sounds like the OP needs to be more specific about whether the HOA is actually foreclosing. They mention a lien, but then briefly mention foreclosure which are different completely.
Pay the 300, say your sorry and be done with it...
. if the hoa forecloses, that means they own the house. ....
No it doesn't mean that. See my post above. The winner of the foreclosure auction will be the new owner. The proceeds from this auction is used to pay back the hoa.
Yeah that's true. I just assumed that's what she meant
I cannot believe a HOA can really foreclose on your home?!?! WTH?
It is unbelievable. The HOA's in NC are completely unchecked. Some operate within the intent of what an HOA was meant to be but many do not. I own a home in Highland Creek in Charlotte and the HOA is completely out of control. Our State legislature hasn't provided any real protections.
The real beneficiaries of the HOA excessive powers are the attorneys. Sellers Hinshaw is a law firm in Charlotte that profits substantially from the current laws. In fact one of their founders, Tim Sellers, sat on the citizen drafting committee for the Planned Community Act (PCA). The firm had recently lost a case in the NC Appelates Court that limited their fee's to 15% of the outstanding debt. Of course he made sure that the PCA included language, albeit it vague, that allows attorneys to charge substanitally more for minor debts and not be subjected to the 15% statute. Crazy to believe but HOA's can foreclose over any amount of outstanding debt - even $1. There is no recourse to dispute attorney's fees as disputing them incurs additional fees and triggers a clause in the PCA that allows attorneys to charge more than $1200 regardless of debt being collected. HOA's won't allow payment for past dues without concurrently paying the attorney's fees. BTW - the HOA's do not incur the cost of the attorney's fees. So it's not like it's a reimbursement of fees paid. This truly is a racket for the attorneys and there are no worse offenders in the Charlotte area than Sellers Hinshaw.
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In Florida there is homestead, which protects a homeowner from losing their home in lawsuits or being foreclosed by anyone other than a lender. You can be liened up the wazoo so when you sell the home the creditors will get their money. Earlier this year I was combing the NC statutes for information on inheritance taxes and I thought I saw something about homestead and therefore assumed. Won't do that again. My husband thought the same and since no one has had even a lien put on a home here in our development it has not come up in their discussions.
yes - they can
