HOAs Under Fire: The Growing Problem You Need to Know About (video)

The Dark Side of HOAs: My Story and the Harsh Realities

HOAs have gained a notorious reputation for overstepping their bounds, and recent discoveries by the IT team only reinforce this perception. Last year, the association filed liens on five homes for amounts less than $1,200. It’s easy to say, “I won’t live in an HOA,” but with over 75 million Americans residing in HOA-governed communities, avoiding them is increasingly difficult. Most new developments today are part of an HOA. What many don’t realize is that HOAs hold the power to evict homeowners, as one woman painfully discovered.

Her home, valued at $413,000, was sold for a mere $221,000 after her HOA foreclosed on it 11 months prior. Today, we delve into various HOA horror stories, including my own ongoing ordeal, hoping to reach some resolution by the end of this video.

HOA Evictions: A Hidden Threat

When you think of eviction, landlords and leases come to mind. However, HOAs can evict homeowners differently, bypassing tenant protection laws. According to Rocket Lawyer, homeowners have more rights than tenants because the HOA does not own the home. However, by purchasing a home in an HOA, homeowners agree to abide by the association’s rules and bylaws. This means landlords must ensure their tenants comply with HOA regulations as well.

The Fine Print of HOA Rules

These rules allow HOAs to fine homeowners for violations. If unpaid, these fines can lead to foreclosure. The goal is typically to correct the issue, not to force a homeowner out. Homeowners can appeal the HOA board’s decision or seek a vote to change the rules. Voting by proxy is often allowed for those unable to attend meetings.

Despite the intended corrective nature of these rules, some HOAs seem to prioritize fines over solutions, leading to excessive charges and unjust evictions.

A Personal Story: When HOA Rules Go Too Far

Take the story from 2022 out of North Carolina. A woman who paid off her house didn’t know her neighborhood had an HOA. She ignored the letters Military Members and HOA Foreclosures

Service members face unique challenges with HOAs. One service member set up automatic payments to his HOA while deployed, but a change in management led to missed payments and foreclosure. Upon returning from Afghanistan, he found his house sold. HOAs are legally barred from foreclosing on active duty service members due to the Service Members Civil Relief Act (SCRA). Violating this law can result in fines and imprisonment, emphasizing the need for HOAs to verify a homeowner’s active duty status before proceeding with foreclosure.