How much does it take a Homeowner’s Association (HOA) to foreclose your $300,000 house? A late payment of $800, apparently.
Captain Mike Clauer was serving in Iraq last year, when he got a frantic call from his wife that their HOA had seized their house in Texas and sold it.
Clauer’s response was one of exasperation; The $300,00 home was completely paid for!
Rushing home from Iraq, Clauer found that in some states, a HOA can foreclose on and sell a home for late payments of a few hundred dollars. Sadly, by the time he got back to Texas, their four-bedroom, 3,500 square foot home had been sold for $3,500.
Yes, that’s 1 percent of what Clauer paid – and the new owner quickly sold it for $135,000, netting a hefty profit.
Now, lawyers for the HOA call the Clauer’s case regrettable, but blame them for not paying their dues on time. And in some states, the law is weighted heaving in favor of the Association. It’s so bad in Texas that a Houston lawyer, David Kahne, says you’re better off begging the HOA for mercy, than hiring a lawyer.
Via NPR