HoA Foreclosure in Texas

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Cdotson

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My HOA recently placed an expedited foreclosure on my property for past due fees. I dispute the fees because they have went from $58/mo to $158/mo, and they add an additional $30 for late fees, another $230 just to place in a 8 month repayment plan, along with other "legal fees".
What can I do?
My mortgage is current, credit good. My spouse, the property owner is in the Army reserves, also a veteran.
The HOa sent letters while he was away at military training, I faxed them his official orders.
Also, many homeowners in my neighborhood are disputing the fee increase...we were promised a park, club house, but have nothing! Also, there are complaints of our common area lawn not being maintained, one week our trash was not collected, etc.
Can I appeal or figure out a way to settle?
I am a Texas resident...Harris count(Houston).
 
Pay the fees!!! You can dispute the fees in accordance with HOA and state laws. You are not going to win on the "screw you defense".
 
Cdotson said:
My HOA recently placed an expedited foreclosure on my property for past due fees. I dispute the fees because they have went from $58/mo to $158/mo, and they add an additional $30 for late fees, another $230 just to place in a 8 month repayment plan, along with other "legal fees".
What can I do?
My mortgage is current, credit good. My spouse, the property owner is in the Army reserves, also a veteran.
The HOa sent letters while he was away at military training, I faxed them his official orders.
Also, many homeowners in my neighborhood are disputing the fee increase...we were promised a park, club house, but have nothing! Also, there are complaints of our common area lawn not being maintained, one week our trash was not collected, etc.
Can I appeal or figure out a way to settle?
I am a Texas resident...Harris count(Houston).
Click to expand...




Have I got great news for you, madam?

Yes, why yes, I have!!!!

Here in our lovely and free republic of Texas, you can't foreclose on a person's home, UNLESS you hold the note.

Texas homestead rights protect property from all but the few types of constitutionally permitted liens that may be imposed against a homestead.


Texas homeowners are protected from a forced sale for the payment of debts, except for debts incurred for purchase money on the homestead, taxes on the homestead, valid mechanic's liens for work or services performed on the homestead, certain extensions of credit such as a home equity loan, and certain reverse mortgages.

A Texas homestead is not, however, secure from seizure for a debt owed to the federal government, or from an encumbrance existing on land prior to its dedication as a homestead.

Someone potentially could file a lien against your home, if they got a judgment, but foreclosure, no way.

Many, many moons and suns ago, our wise forefathers gave us homesteaders laws.

It seems some of those old dudes, back in them cowboy times would gamble away their ranches, trying to draw that straight.

Well, that would leave ma and her little rag muffins with no where to live.

Our Texas Homestead Act offers us all constitutional protection, having withstood the test of time and remained virtually unchanged, as we have moved from the 19th century through the 20th century and into the 21st century.

The practical protections of the homestead laws prevent any creditor (except for the mortgage holder, a taxing authority, or the holder of a note created for a home improvement loan) from forcing the sale of the homestead to satisfy nonpayment of a debt.

It is difficult to "abandon" the homestead protection to borrow against its equity.

An owner who wants to maintain property ownership and be able to borrow against its equity would have to move out of the property and demonstrate it is now being used as rental/income-producing real estate and that he or she has established a new homestead elsewhere.

It is interesting to note that home equity loans were not available in Texas until the constitution was amended, effective January 1998. Home equity loans in Texas involve numerous restrictions and requirements that may not exist for such loans made in other states. The amount of a home equity loan plus the balance of the first mortgage may not exceed 80% of the value of the property, thus leaving a 20% equity cushion at the time of the second lien.

So, this is nothing more than a bluff.

No one but the lien holder, and few governmental entities can foreclose on your home.

A creditor can place a lien against your home, so can a contractor, but not a Home Owners Association.

Does the HOA hold your note? Then, not to worry, madam, not to worry.

Here are sites offering additional insight on our unique Homestead Act.

http://corporate.findlaw.com/litigation-disputes/an-overview-of-the-texas-homestead-law.html

http://www.tshaonline.org/handbook/online/articles/mlh02

http://www.lonestarlandlaw.com/Texas-Homestead.html







The homestead has always been sacred in Texas. The Texas Constitution provides the homestead of a family or single adult is protected from forced sale for purposes of paying debts and judgments except in cases of purchase money, ad valorem taxes, owelty of partition (divorce), home improvement loans, home equity loans, and reverse mortgages. Further, even a permitted lien must be in writing and signed by both spouses in order to be valid. This protection, combined with the prohibition against garnishment of wages – contained in both Tex. Const. Sec. 28 and Tex. Prop. Code Sec. 42.001(b)(1) – has long made Texas a haven for debtors.

It is quite possible to make a good salary (which cannot be garnished), own a paid-for million dollar home, drive a paid-for car, have numerous judgments against you, and be reasonably secure from creditors. This differs from other states, where judgment creditors can literally put a homeowner on the street with only the clothes on his back. Add a living trust to the mix, and asset protection and estate planning can be combined into an effective unified structure. Of course, if investment assets are involved (e.g., rental property) then it may also be prudent to consider forming an LLC to hold these assets separately.

Texas homestead laws are liberally construed by the courts. "Indeed, a court must uphold and enforce the Texas homestead laws even though in so doing the court might unwittingly assist a dishonest debtor in wrongfully defeating his creditor." Painewebber, Inc. V. Murray, 260 B.R. 815, 822 (E.D.Tex.2001). Unless an individual judgment debtor owns investment real estate, sums of cash or cash-equivalent assets, or a business with attachable inventory, a judgment against him may be essentially uncollectable. In such a case, it is said that the debtor is "judgment proof."

DAVID J. WILLIS ATTORNEY
http://www.LoneStarLandLaw.com
Copyright © 2012. All Rights Reserved Worldwide.

http://www.lonestarlandlaw.com/Texas-Homestead.html
Click to expand...
 
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I've read that the Homestead Act is waived under HOA bylaws....
So I guess the Homestead act doesn't protect me
 
I live in Texas as well and received the same notice a LONG time ago. They have done nothing. They said they filed a lien and I received a paper saying that. BUT, they have not in any way tried to take our home. So yes, Army Judge is correct. :)
 
Thanks! I see how these companies can scare you....all of this has only empowered me to attend the meetings and be more active as a homeowner!;)
 
I'm not an attorney but I am on an HOA board in Texas. An HOA can foreclose on a property for non-payment of dues and attorney costs from trying to get you to collect. From what I can tell, this is usually the process. The HOA or its agent sends you the bill for your dues, then they mail you past due letters each one more threatening than the last. After about 4-6 months of this they either refer the account to a collection agency or the HOA attorney. Most HOA's have a collection agreement with their attorney that allows them to take whatever steps they want to collect from you, including forclosure. They sometimes take it as far as getting a judgement in favor of the HOA (1 step short of foreclosing the lein). Then the HOA board has the option of actually foreclosing the lein. The fact that you are now active in your HOA may be all that saves you being foreclosed on, that is other than paying your bills. If you can't pay try to work something out with the board. They are your neighbors and hopefully will be understanding of your situation. Many times these situations get taken way too far by overly aggressive HOA management companies and attorneys, and its faceless. No phone calls or talking face to face, just aggressive sounding letters from people you have never met. Getting to know your neighbors and the board members is the best way to stop this stuff if you are in a situation where you can't pay.
 
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