I paid my homeowners dues late. Now big trouble. (Center: foreclosure, HOA fees) - Houston - Texas (TX) - City-Data Forum

richzre · 03-20-2010, 10:10 AM

Hi, I'm a first time home owner in my third year owning. I had no idea how homeowners associations work but I'm learning. In 2009, I didn't pay my dues of $185. They were due right after Christmas and I was having a hard time paying my other bills so I let this one slip. I was sent several letters but I thought they were a scam. I basically ignored them and figured I would just pay my 2009 dues in 2010 when I had more money. I figured there would be a late fee of some sort.

In January 2010, I went to my Homeowners website to pay all my dues (2009 and 2010). The site wouldn't let me. I called the homeowners association office to let them know that I couldn't pay on the website and that I wanted to settle my 2009 and 2010 dues

Then is when I found out...they said I couldn't pay via the website because my file was with their attorney. I was like what? So I called their attorney and they said I owed $2100 for late/legal fees. Then they wanted me to enter in to a payment agreement with them. I thought it was a joke. Enter a payment plan for $2100? No way..this is getting crazy I thought

Remember, I'm just learning how all this works now. Forgive me for being ignorant to what Homeowners Associations are all about.

So after refusing to enter a payment plan with their attorney, I went personally to talk with the Association Office. I walked in and gave my name to the receptionist. She looked it up and said sorry sir, we are not allowed to talk to you because your file is at the attorney (By the way, the attorney's office is directly across the street from the association office).

Anyway, ticked off at this point, I demanded that I see someone in charge. Finally, the manager comes out and says the only thing you can do is write an email to the Board of Directors.

She gives me her email address and said send me your request and concerns and I'll forward that it to the Board. So I draft an email stating that I was sorry and that I wouldn’t do it again...etc. Also, I said I thought the late/legal fees were unreasonable and offered them $600 to settle my 2009 dues. ($600 seems more than fair). Two weeks later I get a denial response. They said that the Board's hands are tied when it goes this far and they again redirected me back to their attorney to enter in to a payment plan.

Here's the bottom line. I'm not going to enter a payment plan to pay back $2100 on $185 homeowner’s dues. I knew there would be some late fees but nearly $1900. C'mon..this is downright larceny and there has to be some way I can fight back

So now I'm in a bind. Is there a limit on how much they can charge for late fees? It’s obvious the HOA attorney’s are racking up bogus legal fees and passing it on to me using foreclosure over my head as a means of extorting money.

I'm stressed and I don't know where to turn for help? What are the current Texas laws about HOA’s and how much they can charge for late fees? Also, will they really go as far as foreclosing on my house over this? I just want to pay my 2009 dues reasonably and move on with my life. It seems like it would be so easy for them to just settle with me and move on as well.

RCH99 · 03-20-2010, 11:01 AM

Quote:

Originally Posted by richzre

Remember, I'm just learning how all this works now. Forgive me for being ignorant to what Homeowners Associations are all about.

^Here's where you went wrong. Nobody, as you're finding out, really gives a rip about how ignorant you are. When you closed on your home in a community with an HOA, you agreed, and signed documents confirming that you understood, that you had to comply with the HOA guidelines. You may want to dig those out and review them.......if they won't even talk to you, it has progressed pretty far. Your next communication from them may very well be a notice to foreclose on your property. If that's the case.....your "I didn't know" defense will not produce much of a favorable result for you. Good Luck...

Malvie · 03-20-2010, 11:02 AM

Quote:

Originally Posted by richzre

Hi, I'm a first time home owner in my third year owning. I had no idea how homeowners associations work but I'm learning. In 2009, I didn't pay my dues of $185. They were due right after Christmas and I was having a hard time paying my other bills so I let this one slip. I was sent several letters but I thought they were a scam. I basically ignored them and figured I would just pay my 2009 dues in 2010 when I had more money. I figured there would be a late fee of some sort.

In January 2010, I went to my Homeowners website to pay all my dues (2009 and 2010). The site wouldn't let me. I called the homeowners association office to let them know that I couldn't pay on the website and that I wanted to settle my 2009 and 2010 dues

Then is when I found out...they said I couldn't pay via the website because my file was with their attorney. I was like what? So I called their attorney and they said I owed $2100 for late/legal fees. Then they wanted me to enter in to a payment agreement with them. I thought it was a joke. Enter a payment plan for $2100? No way..this is getting crazy I thought

Remember, I'm just learning how all this works now. Forgive me for being ignorant to what Homeowners Associations are all about.

So after refusing to enter a payment plan with their attorney, I went personally to talk with the Association Office. I walked in and gave my name to the receptionist. She looked it up and said sorry sir, we are not allowed to talk to you because your file is at the attorney (By the way, the attorney's office is directly across the street from the association office).

Anyway, ticked off at this point, I demanded that I see someone in charge. Finally, the manager comes out and says the only thing you can do is write an email to the Board of Directors.

She gives me her email address and said send me your request and concerns and I'll forward that it to the Board. So I draft an email stating that I was sorry and that I wouldn’t do it again...etc. Also, I said I thought the late/legal fees were unreasonable and offered them $600 to settle my 2009 dues. ($600 seems more than fair). Two weeks later I get a denial response. They said that the Board's hands are tied when it goes this far and they again redirected me back to their attorney to enter in to a payment plan.

Here's the bottom line. I'm not going to enter a payment plan to pay back $2100 on $185 homeowner’s dues. I knew there would be some late fees but nearly $1900. C'mon..this is downright larceny and there has to be some way I can fight back

So now I'm in a bind. Is there a limit on how much they can charge for late fees? It’s obvious the HOA attorney’s are racking up bogus legal fees and passing it on to me using foreclosure over my head as a means of extorting money.

I'm stressed and I don't know where to turn for help? What are the current Texas laws about HOA’s and how much they can charge for late fees? Also, will they really go as far as foreclosing on my house over this? I just want to pay my 2009 dues reasonably and move on with my life. It seems like it would be so easy for them to just settle with me and move on as well.

It's considered a contract. When you buy a house and agree to the HOA's terms, however the HOA agreement is written, you've signed a contract agreeing to those terms. The only defense is to demand the HOA terms BEFORE buying the house.

Good luck, though, on your problem! Sounds like the law office is being unreasonable, but that's sometimes how that works.

AlexTx · 03-20-2010, 11:06 AM

They can foreclose on your house. It does happen but most people pay up before they do.

Topaz · 03-20-2010, 11:12 AM

I think you might need an attorney to argue on your behalf. Try the Texas Consumer Complaint Center.

richzre · 03-20-2010, 11:16 AM

Quote:

Originally Posted by RCH99

^Nobody, as you're finding out, really gives a rip about how ignorant you are.

Hindsight is 20/20. I'm sure you read every detail about your HOA when you bought your first house. The point of the thread is the insane amount of late/legal fees that are being charged to me and what I can do to reduce them.

descovy · 03-20-2010, 11:32 AM

Sure, but you ignored the bill for AN ENTIRE YEAR! You may be new to HOA's but I'm sure you are not new to the responsibility of paying bills on time.

What would happen if you ignored your property taxes for a year? or your mortgage? Or your credit card? Your dentist? And they did try to send letters... you didn't even respond. What made you think they were a scam, and not call the HOA and straighten it out?

Sorry, not much sympathy. You pretty much asked them to ********* over when you decided that you could ignore them for a year. $185 isn't a ton on money. Okay, so you didn't have it in Jan. Why not settle it in Feb or March?

Why no personal responsibility?

Malvie · 03-20-2010, 11:37 AM

Quote:

Originally Posted by descovy

Sure, but you ignored the bill for AN ENTIRE YEAR! You may be new to HOA's but I'm sure you are not new to the responsibility of paying bills on time.

What would happen if you ignored your property taxes for a year? or your mortgage? Or your credit card? Your dentist? And they did try to send letters... you didn't even respond. What made you think they were a scam, and not call the HOA and straighten it out?

Sorry, not much sympathy. You pretty much asked them to ********* over when you decided that you could ignore them for a year. $185 isn't a ton on money. Okay, so you didn't have it in Jan. Why not settle it in Feb or March?

Why no personal responsibility?

Well, when I was unexpectedly laid off just as my HOA dues were due, I called and told them I couldn't pay. They asked if I could pay $50 a month and I said yes, so that's how I paid them that year.

I don't have a lot of sympathy for the HOA's, but in my case, our HOA covers trash collection. They don't have a big margin, either, so if people don't pay, we might or might not have enough money to keep the trash collection going. If we can't, then the City starts tacking trash collection onto the water bill---and that's more than it would cost to pay the HOA dues.

richzre · 03-20-2010, 11:39 AM

Quote:

Originally Posted by descovy

Sure, but you ignored the bill for AN ENTIRE YEAR! You may be new to HOA's but I'm sure you are not new to the responsibility of paying bills on time.

I pay my other bills but I admitted I didn't take this one seriously. Do you think my dentist would charged $1900 in legal/late fees or anyone else for that matter. The point is the amount. Do you consider $1900 reasonable for being late?

TFW46 · 03-20-2010, 11:43 AM

They can foreclose on your house. It does happen but most people pay up before they do.

Yes, they certainly can -- and do - foreclose on houses for unpaid HOA fees and penalties. It's happened several times in my subdivision. And the accrued penalties are often much more (as much as 10 x more) than the fees.