Wenonah Blevins, an 82-year-old widow, lost her mortgage-free $150K Champions subdivision home to foreclosure by her HOA over $800 in dues, which had swelled to $5,000 with penalties and interest.  Dues in Champions are $400 a year.  Ms. Blevins got behind in her dues but dropped off an $800 check last August for two years' worth.  The HOA already had begun proceedings against her and did not cash the check.  Ms. Blevins apparently ignored mail from the HOA, thinking it was junk mail.  The HOA did not achieve personal service on her in connection with the lawsuit, because the process server always tried to knock after 7PM, when she does not answer her door, for fear of prowlers, so the HOA probably achieved alternative service by mail, the usual procedure, and then obtained a default judgment.  In any case, Ms. Blevins did not become aware of the foreclosure proceeding until after it had been completed, on April 10, the second Tuesday (when all non-judicial foreclosures occur in Texas, by auction in the lobby of one of the courthouses).  Her house was bought at foreclosure for $5,000, the amount due.  Apparently there were no competing bidders.  The winning bidder was the same company who bought the home of Mohammed Qavi, the client I represented last fall.  Ms. Blevins now has counsel (Marian S. Rosen), who has obtained a temporary restraining order to prevent further action pending a hearing in state court this Friday.  With any luck at all, maybe Ms. Rosen can get the foreclosure overturned for failure of service.

The Chronicle story indicates that the Champions subdivision is horrified by what happened.  What are the odds they will rise up and do something about their board?  This news report should help a great deal, but only if the neighbors VOTE OUT THE BOARD.

Would it kill these HOA boards or management companies to go make some personal contact before they got their default judgments?  It's cases like this that make me believe the point is to achieve the foreclosure so as to create a fund to pay the foreclosure-related legal fees, not to ensure that the original dues get paid.  The HOA had $800 in its hands last August, but its law firm went on to escalate the matter until there was $5,000 at stake.  Other than generating business for the law firm, what purpose does this serve?

Ms. Blevins, an 82-year-old widow, lost her mortgage-free $150K Champions subdivision home to foreclosure by her HOA over $800 in dues and $4,200 in penalties, interest, and legal fees.  She had sent in a payment for two years' worth of dues and thought the problem was handled.  Wrong.  The HOA rejected the payment, because the interest, penalties, and fees already had begun to pile up.

Ms. Blevins wasn't even aware of the foreclosure until after it happened.  Apparently no one from her HOA met with her to try to work out the situation first.  That's standard practice for a lot of HOAs.  Why look the widow in the eye, when you can turn the messy problem over to your law firm?  Sure, it's expensive, but the whole cost comes out of the widow's home equity.  Sure, she's homeless now, but isn't it more important that the HOA vindicated its right to collect dues, penalties, and interest?  How else can we keep our property values up?

Unfortunately, Ms. Blevins doesn't have any property value any more.  Her $150K home was bought by a vulture fund for $5K.  The fund will make a pretty profit, but Ms. Blevins won't see any of it.

The Champions subdivision is said to be horrified by what happened.  OK, Champions neighbors, how horrified are you?  If you really want to put a stop to this, VOTE OUT YOUR BOARD and change your by-laws.  Otherwise, get used to reading these articles.  And the next house could be yours.

Wendy K. Laubach
4510 Stillbrooke
Houston, TX  77035
713-729-7421
[email protected]

By KRISTEN MACK 
Copyright 2001 Houston Chronicle 

Houston, Dec. 19, 2001
A deal that would have let an 83-year-old widow back into her home after being evicted for failing to pay homeowners association dues looked to be derailed Tuesday. 

Wenonah Blevins' lawyer said the verbal agreement they had reached with her homeowners association, Champions Community Improvement Association, turned sour at the last minute. 

"When it was time to sign it, it blew up," said lawyer Marian Rosen. 

"The deal's off the table. Now we're actively getting ready for trial." 

The case is set for Jan. 3. 

Rosen has asked Harris County Court-at-Law Judge Cynthia Crowe to set aside a default ruling that allowed the association to seize the home. Rosen claims the association failed to give Blevins proper notice of the foreclosure proceeding. 

Blevins also filed a negligence suit against the association in state District Judge Levi Benton's court. Benton has postponed a trial until after the hearing in Crowe's court. 

If an agreement is reached before trial, all related suits would be dropped -- including one filed against the association by Daniel Hilal, who bought Blevin's home at auction for $5,000. 

Although Blevins' home in the Champions area was paid off, the association said she owed $814.50 in fees for such services as trash collection. 

No one from the association could be reached for comment late Tuesday night.