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"Homeowners
associations are very un-American," says Jan Bergemann, a German
who immigrated to Florida about eight years ago and became an advocate
for homeowners after encountering problems with his own association.
"It's power. It's this mentality, 'I can force you to do whatever I
want. I'm on the board, I'm in the clique, and you're not.' That happens
a lot."
The Florida Legislature has moved to check the power of associations
recently, passing a law that took effect last year which prevents
associations from using the power of liens and foreclosures to collect
fines, which can be levied for transgressions such as planting the wrong
kind of flower or using the wrong shade of paint.
But a bill introduced this year that would have set a $2,500 threshold
on delinquent dues or assessments before an association could use the
power of a lien failed to get out of committee.
'I just wanted to die'
Healy brought her three daughters to Florida from Michigan, leaving
behind a messy divorce from her husband of 13 years.
She landed a night job as a nurse and bought a home in 1999 just down
the street from her parents in the Fairway Village subdivision of the
Plantation Golf and Country Club for $132,000.
In April of 2004, she filed for bankruptcy.
In the months that followed, Healy said she fought to stay current on
her bills and set aside what little time she could for her daughters,
while away from the hospital.
"I was robbing Peter to pay Paul," Healy said.
Healy admits that her association dues fell by the wayside, though she
claims she knew nothing of the legal action the group initiated against
her house in January. Letters and bills, she said, often piled up.
Then, on July 20, Healy said she opened a letter she received the day
before from the Kanetsky Moore and DeBoer law firm stating that her home
would be auctioned that day at 11 a.m. It included copies of two public
notices of the sale that ran in the Venice Gondolier on June 15 and 22.
"I was just shaking," she said. She said she kept paging
Vander Wulp, the association attorney who sent the letter, but received
no response.
"I just wanted to die," Healy said. "Because how could
they take my home from me?"
Many don't understand law
Experts agree the underlying problem is that many homeowners simply
don't understand the legal consequences that can come from not paying
association dues.
An association's rules and its powers to foreclose can be spelled out in
several pages or, sometimes, as many as 100. And unless they ask for it
ahead of time, buyers aren't given a copy until the closing.
"We all understand that people aren't going to read 100 pages at
the closing," says Donna Berger, lead attorney for the Community
Association Leadership Lobby.
Berger suggests that providing to buyers a simple one-page overview or
"Q & A" sheet would prevent a lot of problems.
But while Berger concedes that associations could do a better job of
disclosing their rules to potential buyers, she is steadfast about the
need for associations to retain the power of foreclosure.
"I represent 4,000 associations, and I've never had an association
say to me that they can't wait to foreclose," she said. "The
goal is to collect the dues, not to become a homeowner."
Because associations charge dues to pay for such amenities as
maintenance of common grounds, cable television, security guards and
clubhouses, when one member doesn't pay, the burden for those shared
expenses is passed on to the other members.
"Just because Ms. Smith decides she'd rather pay her Macy's bill,
you can't go to the landscaping business and tell them you're not paying
her share this month," Berger says. "And if I've paid my
association dues like clockwork and a neighbor doesn't and the board
says we're going to all pay more to help them out, I'm going to be
upset. Why should I pay?
"The association wants to make sure everyone is paying their fair
share.
Dispute over notification
Though Healy claims she never received forewarning of the association's
lawsuit, the foreclosure judgment, or the auction, court records
indicate otherwise.
Notice of the lawsuit the association filed against Healy in January
includes a time and date stamp indicating it would have been delivered
in person on Feb. 2 at 7:27 p.m.
"The only thing that was served to her was the initial notice in
February," said Steve Albee, communications manager for the
Sarasota County Clerk. "But we do have documentation that shows it
was personally handed to her."
Healy contends that her oldest daughter, who would have been 18 at the
time, may have received the notice and never passed it along. It's a
possibility that court officials couldn't rule out.
Two other notices would have followed via regular, U.S. mail, including
notice that the judge had decided in favor of the association, ruling
for foreclosure in June, and that the date of sale had been set for July
20, said Steve Albee, communications manager for the County Clerk's
Office.
Healy claims she never received those letters.
She filed an objection to the sale on July 25, five days after the sale,
saying she was improperly notified of the sale of her house, the value
of which she estimated at $345,000. The objection earned her the Friday
court appearance.
Vander Wulp filed to have Healy's objection shelved on July 29, arguing
that Healy's objection was not filed in a timely fashion and that public
notice was given. She also argued that Healy made no effort to contact
the association during the proceedings and that the value of the
property was not a legitimate reason to object.
The high bidder, the Fort Lauderdale-based American Recovery Group, won
the auction -- after a dozen bids at $1,000 increments -- for $11,000.
Unless a judge throws out the sale Friday, American Recovery Group has
secured a buyer for the property, DRG Properties LLC.
State records list two officers for American Recovery Group who share
the same home address in Sarasota: a treasurer, Wendy Ingorvaia, 50, and
the president, Crystal Ingorvaia, 24. The records show the company was
founded on July 13, 2004.
Asked about the auction of Healy's house during a brief telephone
interview Friday, Wendy Ingorvaia said she was "not too familiar
with this."
Ingorvaia declined to answer further questions.
Reform
needed?
By
WILL ROTHSCHILD
One West Palm Beach woman’s condo ended up
in foreclosure over a 78 cent delinquent payment.
A Miami Beach police officer is bracing for a lawsuit because he chooses
to park his patrol car in the driveway.
And a Vietnam veteran in Tampa has been fined for flying the United
States flag on a pole and been sued for planting flowers in his front
yard.
As more and more people buy homes in associations that levy mandatory
fees, the number of conflicts over deed restrictions and delinquent
payments are on the rise.
And while the number of people who ultimately have their homes
foreclosed upon remains small — no more than 15 or 20 in Florida last
year, one expert estimates — even the people who defend homeowners
associations and the practice of using liens and foreclosures to collect
fees admit reform is needed to curb abuses.
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