Texas Homeowners Assn forecloses on home of soldier in Iraq over $800, sold for $3500

dafoomie

dafoomie

CAGiversary!
Feedback
39 (100%)
http://www.eastdubuqueregister.com/article.cfm?StoryID=285569
http://abcnews.go.com/Business/arti...-back-iraq-finds-homeowners/story?id=10910681
http://motherjones.com/politics/2010/05/soldier-iraq-loses-home-homeowners-association-foreclose

  • House was appraised at $300,000
  • Bought with cash, no mortgages
  • Couple was late on $800 in HOA dues
  • Foreclosed on and sold for $3,500, buyer resold it for $135,000
  • Husband was in Iraq, wife and kids learned of foreclosure when the new owner demanded rent
  • Homeowners associations have the power to foreclose outside of court in Texas but it is illegal under federal law to foreclose on an active duty soldier's home without a court order.
 
Last edited by a moderator:
[quote name='dafoomie']http://www.eastdubuqueregister.com/article.cfm?StoryID=285569
http://abcnews.go.com/Business/arti...-back-iraq-finds-homeowners/story?id=10910681
http://motherjones.com/politics/2010/05/soldier-iraq-loses-home-homeowners-association-foreclose

  • House was appraised at $300,000
  • Bought with cash, no mortgages
  • Couple was late on $800 in HOA dues
  • Foreclosed on and sold for $3,500, buyer resold it for $135,000
  • Husband was in Iraq, wife and kids learned of foreclosure when the new owner demanded rent
  • Homeowners associations have the power to foreclose outside of court in Texas but it is illegal under federal law to foreclose on an active duty soldier's home without a court order.
[/QUOTE]

Wow, I didn't know homeowners associations had that much power in Texas. That's kind of insane.
 
[quote name='docvinh']Wow, I didn't know homeowners associations had that much power in Texas. That's kind of insane.[/QUOTE]
HOA's have unprecedented power in Texas.

As I understand it, they knew exactly what was going on here. They knew the husband was in Iraq and that the wife was vulnerable. And they knew no matter how much they sold the place for, they were only entitled to their $800. So they gave one of their pals a sweetheart deal for less than 2% of the value of the house, since the remainder would go back to the homeowner anyway.

This is like a 1930s silent film with a handlebar mustache wearing bad guy swindling some poor old lady out of her house. The only thing this company didn't do is tie her up and throw her out on the railroad tracks.
 
I hate HOA's... how the fuck can bully people like this... I know my HOA is cheap on the fees but they are dicks when it comes to trash cans, and being assholes on the looks of the houses, considering my place was not occupied for 2 years before we bought it.
 
Zoning laws are usually lax or almost nonexistent in some parts of Texas, so homeowner covenants are one of the few ways to self-regulate to prevent a strip club or liquor store from opening next door.

It's also an incredibly effective way to show how devolving political power to the little people isn't a good idea.
 
And they're not subject to the usual restrictions on government because they're a private entity. There is no accountability or transparency.
 
I hope that when those Homeowners Association dickweeds die of completely natural causes and not murdered in any way that they are roasted on Satan's skillet while he skullfucks them and his daughter rapes their assholes with a rusty nail spiked strapon. That's supporting the troops? fuck that shit. This is absolutely disgusting and disgraceful. An $800 bribe unpaid because the dude's fighting so we can have houses of our own causes this shit to happen? That's wrong, and the Homeowners Association needs to be taken to task.

Hopefully they will be taken to task because if the bulletpoint up there is to be believed, what they did was illegal. The dude is an active duty soldier, right?
 
[quote name='Chuplayer']The dude is an active duty soldier, right?[/QUOTE]
The house wasn't in his name, so the association is arguing that the rules don't apply. I can't imagine why they're working so hard to remain unnamed.
 
Why is everyone ignoring the fact that this is nobody's fault but that lady's for letting mail pile up for six months without opening it? Plus, they were apparently delinquent even before he left. Just because her man is gone doesn't mean that the bills no longer have to be paid. And did the HOA even know that he was in the military, or on active duty? How much do you people know about your neighbors? Have you ever even spoken to them?
 
[quote name='lmz00']Why is everyone ignoring the fact that this is nobody's fault but that lady's for letting mail pile up for six months without opening it? Plus, they were apparently delinquent even before he left. Just because her man is gone doesn't mean that the bills no longer have to be paid. And did the HOA even know that he was in the military, or on active duty? How much do you people know about your neighbors? Have you ever even spoken to them?[/QUOTE]

Foreclosed on and sold for $3,500, buyer resold it for $135,000

That tells me something sort of fishy was going on.
 
I agree that his wife was at fault for not paying the dues, but the HOA knew what it was doing and took advantage of a bad situation. Neither instance should have happened.
 
I don't think owing $800 gives anybody the right to seize a $300,000 asset. The HOA could have took this to small claims court, but instead somebody got greedy and now it's all going to get real ugly.

The home's current owner, Jad I. Aboul-Jibin, initially tried to evict the Clauers.
Click to expand...
It would be great if somebody could spin this story as "Homeowners Association sells soldier's home to potential terrorists."

Sen. West said he plans to introduce another reform bill. He said he's heard several stories about Texas homeowners associations foreclosing over minor issues, including one "outrageous" case in which a woman claimed an association tried to foreclose on her after she used black duct tape to cover an exposed pipe. The association, he said, had requested she use silver duct tape.

"I think (homeowners associations) do have too much power and we need to balance it out a little bit more," West said.
Click to expand...
 
I really feel bad for this guy and his family. There is something wrong here, and I don't care what the technicalities are I'm pretty sure a judge could put things right.
 
[quote name='lmz00']Why is everyone ignoring the fact that this is nobody's fault but that lady's for letting mail pile up for six months without opening it? Plus, they were apparently delinquent even before he left. Just because her man is gone doesn't mean that the bills no longer have to be paid. And did the HOA even know that he was in the military, or on active duty? How much do you people know about your neighbors? Have you ever even spoken to them?[/QUOTE]

-Losing a $300,000 asset over $800
-Sensible

Pick one.
 
I think Indigo hit the nail on the head. It seems ridiculous to me you would be allowed to foreclose a home based upon a person owing $800. Shit with the EQUITY in their home I'm sure they could cover such a pittance.
I agree that something fishy must've been going on. I'm amazed lmz kneejerked and didn't even think this through.
 
No, lmz is right. That's why I always pay my protection money, cuz if I come up short and I get fucked up I have only myself to blame.
 
Why do people even bother with Homeowner's Associations anymore? I could understand the one's that are minimal and just want the house to look nice outside, even accepting naturescape's as well as gardens but these Nazish one's that want no satellite dishes on houses, a nice GREEN lawn, etc. ugh.
Oh wow SpazX, Afterburner Climax actually hit home systems?! When did this happen?! Any word on other Lundberg board games hitting the 360 or PS3 as well? Or Europa, see Sega Rally 3.
 
Climax went up like a month ago. *looks it up* Two months ago actually - April 21st. I didn't dl it til after that though.
 
[quote name='SpazX']Climax went up like a month ago. *looks it up* Two months ago actually - April 21st. I didn't dl it til after that though.[/QUOTE]

Is it dl only?

Speaking of "Sega Rally 3". If it EVER gets released I hope it hits PC first after seeing the specs. of Europa.
 
[quote name='Sarang01']Why do people even bother with Homeowner's Associations anymore? I could understand the one's that are minimal and just want the house to look nice outside, even accepting naturescape's as well as gardens but these Nazish one's that want no satellite dishes on houses, a nice GREEN lawn, etc. ugh.
Oh wow SpazX, Afterburner Climax actually hit home systems?! When did this happen?! Any word on other Lundberg board games hitting the 360 or PS3 as well? Or Europa, see Sega Rally 3.[/QUOTE]
The whole thing does seem a bit extreme, but what would be the point of a HOA that had no way to enforce its rules? People would be free to just do whatever they want, since there's nothing anyone could do about it, making it useless.

They might've taken advantage of a situation caused by the guy's wife, but had she just been responsible enough to pay her bills, they wouldn't be in this mess. Fortunately for them, the guy is in the military, so they get to play the sympathy card. If he was a used car salesman, I doubt people would be reacting so strongly. The whole thing probably could've been taken care of by just sending someone to their house to let the lady know she was past due, but oh well.

And people bother with them because they want things like a guard working the gate, and other random amenities. Some might even want their landscaping taken care of by the HOA, so they never have to worry about it.

Edit: Is it really that different than say, having your home taken away from you for not paying your property taxes?
 
Last edited by a moderator:
[quote name='lmz00']The whole thing does seem a bit extreme, but what would be the point of a HOA that had no way to enforce its rules? People would be free to just do whatever they want, since there's nothing anyone could do about it, making it useless.

They might've taken advantage of a situation caused by the guy's wife, but had she just been responsible enough to pay her bills, they wouldn't be in this mess. Fortunately for them, the guy is in the military, so they get to play the sympathy card. If he was a used car salesman, I doubt people would be reacting so strongly. The whole thing probably could've been taken care of by just sending someone to their house to let the lady know she was past due, but oh well.

And people bother with them because they want things like a guard working the gate, and other random amenities. Some might even want their landscaping taken care of by the HOA, so they never have to worry about it.

Edit: Is it really that different than say, having your home taken away from you for not paying your property taxes?[/QUOTE]
Adding to the above, when you buy a home that is part of an HOA you have to sign the agreement to abide by all the rules and regulations (of which this was obviously one). $800 or not, the HOA was well within their rights to do this and they are not the ones at fault. It really is no different than having your property seized for not paying property taxes.

And whether the soldier was out of the country or not, it is still the homeowners responsibility to ensure that everything is taken care of whether they live in the house or not.

Also I'm surprised no one has wondered how an active duty soldier could pay for a $300,000 house in cash? That's a lot of scratch. :lol:
 
[quote name='lmz00']
Edit: Is it really that different than say, having your home taken away from you for not paying your property taxes?[/QUOTE]

Actually I don't believe in property taxes. It says you basically don't own your house and you're renting it from the government. I'd rather be taxed somewhere else at a higher rate. I also believe when you buy FOOD from a grocery store you shouldn't be taxed. Anything else there is fine but taxing food is despicable in my opinion. It's not like you can just opt out of eating.
At least don't place property tax on someone's only home. It would be one thing if someone had two or three homes. Start taxing them after that.
edit: pjb they could've easily taken them to Small Claims court. Instead they were irresponsible and were allowed to foreclose on them for such a small sum. I would like to know who the bank was who approved this.
 
I'm going to agree with all of the posts actually. Yes the HOA had the right to foreclose on the home BUT there is something REALLY fishy about how much it was sold for and how fast the turnaround time was for that resell. Definitely shady practices going on there and I hope the family gets out of this okay.
 
[quote name='lmz00']The whole thing does seem a bit extreme, but what would be the point of a HOA that had no way to enforce its rules? People would be free to just do whatever they want, since there's nothing anyone could do about it, making it useless.[/QUOTE]
You do what every other state does and place a lien on the home for the amount due and you take them to civil court. To seize someones house over that amount of money is absurd, and to do it without a court order is scary.

[quote name='pjb16']$800 or not, the HOA was well within their rights to do this and they are not the ones at fault. It really is no different than having your property seized for not paying property taxes.[/QUOTE]
Actually, they weren't, and they are.

It is against federal law to seize the home of an active duty soldier's home without a court order. They seized the home without a court order. Therefore they were not within their rights to seize the home.

And its different from almost every other circumstance where your property is seized, because it doesn't go through the courts. You have no due process.
 
[quote name='speedracer']Zoning laws are usually lax or almost nonexistent in some parts of Texas, so homeowner covenants are one of the few ways to self-regulate to prevent a strip club or liquor store from opening next door.

It's also an incredibly effective way to show how devolving political power to the little people isn't a good idea.[/QUOTE]

Or it's a great way of showing what happens when you throw the idea of "Private property" straight out the window.
 
If your neighbor's private property is so overgrown that it is effecting your property value, should you have the right to force your neighbor to do something about their own property?
 
But the house was purchased by his wife's parents for his wife.

The whole "she didn't open mail because she was afraid she'd get bad news" excuse sounds totally bogus to me. Did she really think that if her husband died while serving, all they'd do is send a letter?

Edit: Some of you people are making it seem like HOAs can just take your house at any time, for whatever reason. Way to sensationalize.
 
Not all HOA's, just in Texas. See the foreclosure attempt in one of the articles for using the wrong color duct tape.

$800 is a trivial reason to take someones home. Its completely absurd. As far as the wife is concerned, I see you've never dealt with anyone who is either clinically depressed or the spouse of a soldier in combat overseas.

There is a reason why the cable company can't just take your house if you don't pay your bill for a couple of months. Its completely unreasonable.
 
[quote name='Clak']If your neighbor's private property is so overgrown that it is effecting your property value, should you have the right to force your neighbor to do something about their own property?[/QUOTE]

If your neighbor is a black gay and that effects your property value, should you be able to force your neighbor to do something about it?
 
All the cable company has to do is cut your service off. It's not like your neighbors are going to be adversely affected by you not paying your cable bill.

That's like comparing not paying a credit card bill to not paying parking tickets. All the card company can do is sue you. On the other hand, your car can be towed and auctioned off to pay for those tickets.

If someone doesn't want to be subject to rules and whatnot, there's nothing forcing them to buy a house in a HOA community.
 
1. I've lived in a town home for many years and we have similar agreements with our association. However you need to be a year or more to get evicted and foreclosed on. Which hasn't happened.

2. As the article states you can't foreclose on a solder during active duty. That alone should be able to get this guy a reverse judgment. Federal laws on this type of level always trump local laws and silly contracts. That homeowners association should have done their due diligence before foreclosing on their home while this man was on active duty. I have a strong feeling this will all blow up in the face of the homeowner association. If it does, then this family could sue for damages, the new owner, and the guy who bought it for 3 grand or so could too.

3. Time are tough. I'm shocked this homeowners association didn't work out a payment plan with late payers. I bet in these times lot of people are late or behind on payments and they used these people as an example.
 
[quote name='Sk']1. I've lived in a town home for many years and we have similar agreements with our association. However you need to be a year or more to get evicted and foreclosed on. Which hasn't happened.

2. As the article states you can't foreclose on a solder during active duty. That alone should be able to get this guy a reverse judgment. Federal laws on this type of level always trump local laws and silly contracts. That homeowners association should have done their due diligence before foreclosing on their home while this man was on active duty. I have a strong feeling this will all blow up in the face of the homeowner association. If it does, then this family could sue for damages, the new owner, and the guy who bought it for 3 grand or so could too.

3. Time are tough. I'm shocked this homeowners association didn't work out a payment plan with late payers. I bet in these times lot of people are late or behind on payments and they used these people as an example.[/QUOTE]

This is what makes me wonder about the situation. Didn't someone say that the house wasn't in the soldiers name? That isn't any excuse to screw the family over like they did, but it does mean it won't get turned over very easy.

My problem lies with both parties, the wife should have paid the bills, instead of not opening mail like she didn't need to. The HOA should have worked something out with her face to face if she wasn't responding to letters instead of just selling the house.

The second part of that last paragraph makes me think we are missing something.
 
[quote name='lmz00']All the cable company has to do is cut your service off. It's not like your neighbors are going to be adversely affected by you not paying your cable bill.[/QUOTE]
How does being late on your HOA dues adversely affect your neighbors?

SEIZING ONE'S HOME is completely beyond the pale in a situation like this, regardless if its an HOA or a credit card company. You have other remedies. You can place a lien on the home, you can get a judgement in civil court. But you want to put people out on the street, from a home that is PAID FOR, because of $800? You want to take a $300,000 asset to satisfy an $800 debt and leave the owners with absolutely nothing? Is this not completely nuts to you?

There is a reason why the vast majority of states do not allow this.
 
[quote name='dafoomie']How does being late on your HOA dues adversely affect your neighbors?[/QUOTE]
Community amenities need to be maintained. The HOA pays to maintain them. If you're not paying the dues, then you're basically using things that your neighbors are paying for.

Think of it as if you had roommates, and one of them isn't paying their share of the utility bills. Those bills still need to be paid, either way. The HOA still has to pay people to take care of the landscaping, they still have to pay someone to sit in the guard booth, etc. Of course, this all varies depending on what your subdivision has. Some have playgrounds, pools, tennis courts and a whole bunch of other stuff, but you get the point (I hope).
 
[quote name='UncleBob']If your neighbor is a black gay and that effects your property value, should you be able to force your neighbor to do something about it?[/QUOTE]

Sigh, answer the fucking question and stop with the nonsense.
 
[quote name='Clak']Sigh, answer the fucking question and stop with the nonsense.[/QUOTE]

Bob doesn't answer questions and I started the nonsense. Sorry about that.
 
And yes, I think the HOA should've pursued other methods before foreclosing, but what's done is done. I don't think that house is considered marital property (since it was a gift), so I wouldn't be surprised if the whole "you can't foreclose on an active duty soldier's home" defense doesn't really apply to this situation when it's all said and done.
 
[quote name='Clak']Sigh, answer the fucking question and stop with the nonsense.[/QUOTE]

If you can prove in a court of law that your neighbor's poorly maintained property is having a real adverse effect on your own property, then, sure.

The 'I don't like the way this looks, so I'm not paying as much for it' doesn't quite cut it for me. It's not your neighbor's place to provide for the value of your property.
 
Ok, that's all I wanted. I just wanted to know how far you felt a property owner's right should extend. I didn't know if that meant keeping the property however you want or actually keeping it decently cared for.

Obviously if your neighbor's grass is feet high and there are old cars laying somewhere in it (don't laugh, I've seen it) that is going to effect your property value. That's actually been an issue in this area in the last year or so. Property which looks abandoned but actually isn't, the owner just doesn't do anything to clean or maintain it. Also creates a situation with snakes and other dangers.
 
You know, two years ago, my neighbors had moved out and were trying to sell their home. I'm not sure what happened, but there was short period where their lawn didn't get mowed for awhile. I took the 20 minutes or so and mowed it while I was mowing my own lawn. No harm, no foul. Sadly, they were probably paying someone else to do it the whole time. ;)

Anywhoo, no, I don't believe that if I want to let my grass grow a foot high or paint my home neon pink that my neighbors should be able to complain. Now, if my yard is attracting dangers (say, the pile of old tires is becoming a breeding ground for mosquitos, then there's a complaint.
 
[quote name='UncleBob']You know, two years ago, my neighbors had moved out and were trying to sell their home. I'm not sure what happened, but there was short period where their lawn didn't get mowed for awhile. I took the 20 minutes or so and mowed it while I was mowing my own lawn. No harm, no foul. Sadly, they were probably paying someone else to do it the whole time. ;)

Anywhoo, no, I don't believe that if I want to let my grass grow a foot high or paint my home neon pink that my neighbors should be able to complain. Now, if my yard is attracting dangers (say, the pile of old tires is becoming a breeding ground for mosquitos, then there's a complaint.[/QUOTE]
Then you just avoid HOA's. Simple as that.
 
[quote name='pjb16']Then you just avoid HOA's. Simple as that.[/QUOTE]

Yes and no. It's not like you can opt-out of an HOA before or after buying property, or when you want to sell a piece of property.
 
You must log in or register to reply here.
bread's done
Back
Top