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[quote=james777;31971247]You can call it anything you like. I will briefly explain how it works.
Let's say you live in a community in Pennsylvania where your HOA fees are $100 a month, they are due the first of every month, and if you do not have the payment in by the 10th of the month, you are charged a $10 late fee. Pretend it is the end of the year 2012 and you are up to date on your HOA fees, but you have been late three times, so you have $30 in late fees accumulated. In January 2013, the HOA decides to sue you for the $30 in late fees you have accumulated, but not paid. So they sue you for the $30 in late fees, and court costs, and attorney's fees, and postage (yes, they actually add postage to the total, I kid you not), and according to Pennsylvania HOA law they are also able to sue you for the entire year of 2013 HOA fees, even though they are not due yet (they are due the first of each month). So even though you only owed the HOA $30, you now owe the HOA about $2,500. Of course, after they have a judgment against you and they immediately take your bank accounts, you need to keep paying the monthly HOA fees, or you will be sued again.
I might add that they do not bill you for any HOA fees or late fees that you may owe, telephone you, inform you in any way, or attempt to collect the money that you owe because that would deprive them of a lawsuit and attorney's fees. Their goal is to take you to court ASAP and get a judgment so that a lien is put against the property immediately, and they get their attorney's fees.
Of course you are free to sell your house/apt. anytime you like. However, all liens must be settled at closing.
The PA legislature in Harrisburg caved in to a high pressure lobby of real estate attorneys and property management companies to pass this law, so that the attorneys would have more work. This goes against the trend in the US to make the costs of owning a home clearer to the consumer, a remedy to one of the factors that caused the great real estate crash a few years ago.
Do you still you love your HOA?[/
So, a deadbeat is over 10 days late on 1 out of every 4 months, gets assessed a $10 per month late fee and even ignores paying that.
And the HOA should do nothing but happily look forward to a new year and the same results from the deadbeat ?
fool me once, shame on you
fool me twice, shame on me
So, a deadbeat is over 10 days late on 1 out of every 4 months, gets assessed a $10 per month late fee and even ignores paying that.
And the HOA should do nothing but happily look forward to a new year and the same results from the deadbeat ?
fool me once, shame on you
fool me twice, shame on me
never let a deadbeat fool you twice.
You have misunderstood my position. I have no problem with the HOA taking various legal collection actions, including lawsuits, against homeowners who do not pay their HOA fees or late fees. My complaint is that a PA law allows the HOA to sue for HOA fees that are not due yet. Being sued for back fees that were not paid is fine by me, but being sued for HOA fees that are not due for six months or a year is a disgrace. What next? Should the law allow them to sue for the next five or ten years fees?
My other beef is that not all HOA send bills for late fees. So how could a homeowner ignore a late fee that he doesn't know that he has?
My other beef is that not all HOA send bills for late fees. So how could a homeowner ignore a late fee that he doesn't know that he has?
I find it hard to believe that it is possible not to advise about late fees as you describe. The banks and the credit card companies are required, why not an HOA?
I find it hard to believe that it is possible not to advise about late fees as you describe. The banks and the credit card companies are required, why not an HOA?
There are even some states where you don't really have to be informed about foreclosure. It's assumed you know it will happen since you haven't paid. I guess this is along the same line of thinking.
HOA are great for starter homes that you don't live in forever and want to sell because they keep the neighborhood looking great... Terrible if you want a family estate and flexibility to what you want... I am in my starter home right now and will sell it when the time comes...
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