There is no question that people who benefit from the services provided by their homeowner and condo associations should pay their pro rata share of the expenses.  And there is no question that it is part of the association’s fiduciary duties and responsibilities to the members to ensure that all monies owed the association are collected.  It is through the regular and routine assessments, fees and dues that associations are able to function. 

Well-managed and run associations have efficient and effective collections procedures in place and do an excellent job of keeping their delinquencies to a minimum.  They follow up in a timely manner, work with homeowners who may be experiencing temporary financial hardships and avoid tacking on unnecessary collection costs and junk fees.  A properly managed association is never at risk of financial disaster because of one or two delinquencies. 
Yet proponents of foreclosures will tell you that if associations are stripped of that power, homeowners will not pay their share of common expenses resulting in a lot of defunct HOAs.  They believe the only way to ensure the fiscal viability of associations is through fear and intimidation and the best way to achieve that is through the power and threat of foreclosure. 

While there may be some freeloaders living in associations, many foreclosures are to collect a minimal amount; more often than not they involve fines or late fees and not legitimate assessments.  The foreclosure bullies often target elderly, widowed women with mortgage free homes, or minorities who are at a further disadvantage when it comes to protecting themselves.  These people do not pose a threat to the financial well being of associations and it is totally ridiculous to suggest that, what often amounts to a multi million dollar corporation will teeter on the brink of insolvency because of a couple of dollars. 

You may have read about the 77 year old woman who testified recently that her home was foreclosed on by her association to collect 4 cents.  That’s right, 4 of those little copper coins most of us toss in a jar or leave on a counter because carrying them around is more trouble than they are worth.

Much of the country watched and followed the heartbreaking saga of Wenonah Blevins, the 82-year-old widow whose mortgage free home was foreclosed on when her association refused to accept her check because she was late.  After almost a year, the association settled her case by paying her $300,000 in damages and paying an additional $95,000 to buy her house back. The very house they sold for $5,000! 

Many Americans have been following the follies of one out-of-control board and their money-attorney as they sued, bullied, maligned, penalized and in general, tormented George and Anne Andres.  And Americans continue to watch, outraged, as they threaten to foreclose to collect legal fees they incurred while trying to get him move his flag pole.

In cases where there is a legitimate debt, the relatively small amount due multiplies once the association collection attorneys get involved.
4 pennies can rapidly balloon into thousands of dollars while the association ends up becoming the collection agent for the attorney.  The very same predatory attorneys who are here today, trying to convince you those entire neighborhoods will fail if you take away their favorite bully tool.

Don’t believe a word of it.

Sincerely,

Gary L Hinkle
Melbourne Beach, FL