HOAs Can Legally Foreclose On Your Home,

But That May Change

Article Courtesy of Channel 9, wsoctv.com -- Eyewitness News
November 24, 2004


It's a month before Christmas and Eric and Adrian Moorer may be losing their home for the holidays. Their homeowners' association in north Charlotte's "The Brownestone" neighborhood is foreclosing on them over $70 in unpaid homeowners dues.

 

"They're trying to put us out on the street December 15th - me and my two kids and my husband," said Adrian Moorer.

 

Eric Moorer is on disability because of failing kidneys. Adrian is scraping by on a teachers salary and a part-time job.

 

Last March, their problems escalated when the attorney for The Brownestone neighborhood association filed a lien on their house.

 

It said the Moorer's yearly dues were late. But instead of owing $70, the lien was for $472.

 

A week later, a letter came adding in legal fees and telling the Moorer's they now owed $703.

 

"Why am I paying, after two months of being late, why am I paying $703. I still don't understand," said Adrian.

 

The Moorer's situation only got worse. Despite paying over $300 to the homeowners' association, the neighborhood's lawyer and management company continued to pile on more fees so that now the bill is over $1,500. They've also filed a foreclosure notice, telling the Moorer's that on December 15th just 10 days before Christmas, The Brownestone Neighborhood Association will stand at the civil courthouse and sell their home to the highest bidder.

 

It's all perfectly legal, but North Carolina's Speaker of the House Jim Black, one of the most powerful men in the state, says it may not be for long.

 

"There needs to be some way of encouraging people to pay their homeowners dues if that was the contract, but to repossess a home, to foreclose on a mortgage, that sounds like it goes a bit far to me," said Black.

 

He says, when the legislature reconvenes in January, he'll support new laws that could take away the ability of homeowners associations to use foreclosure to collect unpaid dues.

 

"Before we brought it up to you, did you even know it was going on?" asked Eyewitness News Jim Bradley.

 

"I did not even know it was going on. I think very few people know that it's going on," said Black.

 

Charlotte attorney Tim Sellers knows and defends it. He's the lawyer for more than 500 homeowners associations and insists that without the threat of foreclosure, many homeowners simply won't pay their dues.

 

"I think the associations will be back with a high level of delinquencies. They wont be able to provide the maintenance. They won't be able to keep up the amenities," said Sellers.

 

State Representative Beverly Earle disagrees. Ever since last February when Eyewitness News first showed her that Charlotte residents were losing their homes over homeowner's dues, Earle has been pushing for reforms.

 

"I've got staff looking at what other states are doing as it relates to homeowners associations and I do plan to introduce some legislation," said Rep. Earle.

 

Both rep. Earle and speaker black believe new laws could be debated by spring in Raleigh. But that could be too late for Adrian and Eric Moorer, whose $70 in neighborhood dues has now mushroomed out of reach.

 

"I can't come up with $1500 by December 15th. I can't. We lose the house," said Adrian.

 

Homeowners associations and the attorneys who represent them are expected to vigorously oppose any legislation that would take away their right to foreclose.

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