The HOA sold a home worth over $500k (almost paid off) for $85k at auction, to recover $6k of fines. Their response is that their "foreclosure rate represents less than 1% of their population". Too bad for those people. Unbelievable.
Is an 80% discount typical for a foreclosure auction? I guess there must be immense risks involved, otherwise they would go for more money.
Either that, or I'd have to assume that the auction was not properly publicized, and the HOA is somehow profiting from the sale due to that fact. (eg, feeding info about the auction to people that bribe them, board members buying forclosed homes and selling them at a profit, etc).
Well you don't get to inspect the house, or even enter it, so you don't know the condition. You also must pay with cash-most people can only afford to buy a house with a mortgage.
I also assume most people who let their house go into foreclosure don't keep up with maintenance.
My favorite part is this absolute sociopath towards the end:
Bauman says since [the new law's] passage, HOAs have had to spend more on certified mail, postage and legal counsel associated with the notification process.
Imagine the entitlement that this person thinks postage stamps are an issue worth whining about when foreclosing on a home and removing the occupants.
Imagine the entitlement that this person thinks postage stamps are an issue worth whining about when foreclosing on a home and removing the occupants.
You've not run into many HOA sorts, then. They have this sliver of POWER and they are going to use it as much as they possibly can. And if you're in their way, well, you shouldn't have been in their way! They're the HOA parking enforcement agent and, golly, it sure looks to them like you haven't moved your car often enough (I solved this at one point by parking worse and no longer trying to keep my vehicle far enough forward on the street that someone else could park behind me in a section).
I mean, the people they're notifying are basically violating human rights by having damaged local property values, per the HOA way of thinking.
It absolutely is NOT. The issue is when you buy a home in an HOA, you sign a contract with that HOA (outlining these rules and regulations) that is enforced in courts (it’s a signed contract). They are no better than collection agencies, not government agencies. They may use the same methods as backwater sheriffs do to bolster their pay but they are not, in any way shape or form, affiliated with any government agency.
You don't just sign a contract with the HOA because most HOAs are not voluntary. There are some voluntary HOAs because they provide community amenities and you get access to those amenities when you join the HOA and possibly agree to some other restrictive covenants as well. Most HOAs you never even have to sign a contract it is written into the deed of your property that you are required to be a part of the HOA. In order to own the property you automatically are a member of the HOA and subject to all of it regulations.
The contract is part of closing. Like you said, it’s part of the deed. These cases the community was built by builders for the HOA to manage. In this case, the deed you sign for your house is the contract for HOA. This isn’t Fannie Mae, or Freddie Mac, or FHSA, or any government sponsored thing. It’s pure greed and privilege.
What does a government do? They make rules, enforce rules, collect money, organize some services, etc. All of this is done by the HOA too. You vote on leadership, just like citizens of a state. In essence, the HOA is an additional level of government.
Which ones are those? I'd imagine the HOAs have some "protections" written in. I'd guess they're reasonably close to the effectiveness of local government "protections".
Suing for first amendment rights, property rights, inability to tax without voter approval (in some states). Whereas HOAs are not covered by the bill or rights and can levy special fees by a simple board vote typically.
HOAs are covered by the bill of rights. See how race related deed restrictions have been removed. All it takes to raise taxes is a simple vote by your representatives.
Actually no... They're not covered by bill of rights and regularly infringe on speech. Race protections are due to federal housing laws, not the bill of rights.
Also, the bill of rights has nothing to do with race and doesn't make any mention of it.
Comments
The HOA sold a home worth over $500k (almost paid off) for $85k at auction, to recover $6k of fines. Their response is that their "foreclosure rate represents less than 1% of their population". Too bad for those people. Unbelievable.
Is an 80% discount typical for a foreclosure auction? I guess there must be immense risks involved, otherwise they would go for more money.
Either that, or I'd have to assume that the auction was not properly publicized, and the HOA is somehow profiting from the sale due to that fact. (eg, feeding info about the auction to people that bribe them, board members buying forclosed homes and selling them at a profit, etc).
Well you don't get to inspect the house, or even enter it, so you don't know the condition. You also must pay with cash-most people can only afford to buy a house with a mortgage.
I also assume most people who let their house go into foreclosure don't keep up with maintenance.
My favorite part is this absolute sociopath towards the end:
Imagine the entitlement that this person thinks postage stamps are an issue worth whining about when foreclosing on a home and removing the occupants.
You've not run into many HOA sorts, then. They have this sliver of POWER and they are going to use it as much as they possibly can. And if you're in their way, well, you shouldn't have been in their way! They're the HOA parking enforcement agent and, golly, it sure looks to them like you haven't moved your car often enough (I solved this at one point by parking worse and no longer trying to keep my vehicle far enough forward on the street that someone else could park behind me in a section).
I mean, the people they're notifying are basically violating human rights by having damaged local property values, per the HOA way of thinking.
It's horrifying at all levels.
I mean, HOA is just another level of government. Same thing happens with sheriff auctions to recover unpaid taxes.
It absolutely is NOT. The issue is when you buy a home in an HOA, you sign a contract with that HOA (outlining these rules and regulations) that is enforced in courts (it’s a signed contract). They are no better than collection agencies, not government agencies. They may use the same methods as backwater sheriffs do to bolster their pay but they are not, in any way shape or form, affiliated with any government agency.
You don't just sign a contract with the HOA because most HOAs are not voluntary. There are some voluntary HOAs because they provide community amenities and you get access to those amenities when you join the HOA and possibly agree to some other restrictive covenants as well. Most HOAs you never even have to sign a contract it is written into the deed of your property that you are required to be a part of the HOA. In order to own the property you automatically are a member of the HOA and subject to all of it regulations.
The contract is part of closing. Like you said, it’s part of the deed. These cases the community was built by builders for the HOA to manage. In this case, the deed you sign for your house is the contract for HOA. This isn’t Fannie Mae, or Freddie Mac, or FHSA, or any government sponsored thing. It’s pure greed and privilege.
It's voluntary in the sense that you don't have to buy a house.
What does a government do? They make rules, enforce rules, collect money, organize some services, etc. All of this is done by the HOA too. You vote on leadership, just like citizens of a state. In essence, the HOA is an additional level of government.
It is duck-typed government. Just smaller than a city/town.
Except none of the safeguard of government
Which ones are those? I'd imagine the HOAs have some "protections" written in. I'd guess they're reasonably close to the effectiveness of local government "protections".
Suing for first amendment rights, property rights, inability to tax without voter approval (in some states). Whereas HOAs are not covered by the bill or rights and can levy special fees by a simple board vote typically.
HOAs are covered by the bill of rights. See how race related deed restrictions have been removed. All it takes to raise taxes is a simple vote by your representatives.
Actually no... They're not covered by bill of rights and regularly infringe on speech. Race protections are due to federal housing laws, not the bill of rights.
Also, the bill of rights has nothing to do with race and doesn't make any mention of it.
It's stack ranking for neighborhoods!
This alone smells as a fraudulent scam. Let me guess -- the person who bought the house is a friend of the HOA board and will flip the house shortly.