HOA Foreclosures
Article Courtesy of FOX 29 - WFLX

 
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.