Published: May 12, 2004
Nearly one in five families now lives in
a deed restricted community where a homeowners' association calls the shots.
The rules, for the most part, keep your
neighborhood looking nice but if you break the rules in some cases over
the most trivial of disputes, you could be left homeless.
This flagpole may cost George Andres his
Jupiter home.
George Andres/May Lose Home: "I've spent
out of my pocket, over $40,000."
40-grand on legal fees defending his flag-pole
which the Indian Creek HOA calls a violation. The association wants to
foreclose on his house. Andres is fighting back and has a heavy weight
supporter.
Gov. Jeb Bush: "The homeowners association
is trying to take his home away because of a flag, this is the dumbest
idea I've ever heard."
Robert and Theresa Denson lost their $300,000
Boynton Beach home when their HOA foreclosed over $1200 in back association
dues.
Robert Denson/lost home: "It's the biggest
nightmare of your life, you put so much into your home and lose it for
pennies on the dollar."
Associations seizing homes. A growing trend
not only in Florida. In California, Tom and Anita Radcliff lost their home
over just $120 in back HOA fees.
"It didn't occur to me they would foreclose,
people don't do things like that."
The HOA ordered the Radcliff's out of their
house in three days. The home was then auctioned so the HOA could recover
it's dues. The $300,000 house went for just $70,000.
The Radcliff's get most of the selling
price after their debt is settled. Their outrage will never settle.
"If this was the old west, trying to get
my property, there would be a bunch of dead people out there on the ground."
Instead, the Radcliff's are suing, arguing
the HOA was too quick on the trigger.
Cyber Citizens for Justice is a web site
loaded with similar foreclosures, including one for just $63.50. Case after
case of people who lost their homes after falling behind on their HOA dues
as laid out in the by-laws.
Taking your home is brutal but it is legal.
Remember the Denson's? Attorney Cathy Lively represented them and many
other disgruntled homeowners.
Cathy Lively/Attorney: "Right now, for
the HOA, as per Florida statute 720, the HOA does have the right to impose
a lien, and ultimately foreclose for non-payment of assessments or your
monthly dues."
But the laws may soon change. Legislation
under consideration in the Florida senate would prohibit HOA's from filing
liens against homeowners for minor unpaid fines. It also protects homeowners
like George Andres, giving them the right to display the American flag
regardless of HOA restrictions.
While the laws may take months to change,
there are step you should take to protect yourself now. Before you buy
a home in a deed restricted community, be sure you agree with all of the
rules. Once in the neighborhood don't withold dues out of protest. You
risk penalty fees, legal fees and foreclosure. If your association is threatening
foreclosure, consult with an attorney. |