Obama Program That Hurt Homeowners and Helped Big Banks Is Ending
"When President Obama announced the Home Affordable Modification Program, or HAMP, on February 18, 2009, in Mesa, Arizona, he promised it would assist 3 to 4 million homeowners to modify their loans to avoid foreclosure. Almost seven years later, less than 1 million have received ongoing assistance; nearly one in three re-defaulted after receiving inadequate modifications; and 6 million families lost their homes over the same time period.
"Now the program is ending."
------------
To me, HAMP is a symbol of the Obama administration's disastrous decision to put the welfare of the big banks that crashed the housing market and the world economy ahead of the millions of homeowners who lost their home equity, their homes, their jobs, and their retirement security. Obama had a historic opportunity to break up these predatory banks, send a whole lot of banksters to prison, make the banks refinance underwater mortgages so that people could stay in their homes, and set up much stronger regulation of a metastasizing financial industry that even now has us all at risk again. Instead he decided to bail out the banks and insurance companies without insisting on structural changes.
Friday, January 01, 2016
Harbours Condominium lawsuit finds no wrongdoing - News and Tribune: News
Harbours Condominium lawsuit finds no wrongdoing - News and Tribune: News
Well, that's one way to put it, but there seems to have been another outcome:
"Although the state office wasn't able to find fraud or serious wrongdoing, Attorney General Greg Zoeller said changes to Indiana law that the case inspired were the most important result. 'When we first started, we didn't have the authority to review the finances of the homeowners association,' Zoeller said.
The statute that gave the attorney general the authority to investigate and take action on nonprofit organizations excluded homeowners associations. In 2011, the Indiana Legislature granted Zoeller that authority, largely because of the Harbours case, a news release states. That law was expanded in 2015 to give members of homeowners associations better access to financial information."
Well, that's one way to put it, but there seems to have been another outcome:
"Although the state office wasn't able to find fraud or serious wrongdoing, Attorney General Greg Zoeller said changes to Indiana law that the case inspired were the most important result. 'When we first started, we didn't have the authority to review the finances of the homeowners association,' Zoeller said.
The statute that gave the attorney general the authority to investigate and take action on nonprofit organizations excluded homeowners associations. In 2011, the Indiana Legislature granted Zoeller that authority, largely because of the Harbours case, a news release states. That law was expanded in 2015 to give members of homeowners associations better access to financial information."
Thursday, December 31, 2015
Russia eyes trillion rubles from privatization in 2016: finance minister | Reuters
Russia eyes trillion rubles from privatization in 2016: finance minister | Reuters
Here's the way they tell the story:
"Russia aims to raise 1 trillion rubles ($13.53 billion) from privatization next year, Finance Minister Anton Siluanov said in an interview aired on Thursday, signaling a major acceleration of plans to sell state assets. These plans, ambitious on paper, have largely ground to a halt over the last three years against the background of poor stock market conditions, exacerbated by a plunge in oil prices and Western sanctions linked to the Ukraine conflict. However, the same negative economic developments also mean that the government is increasingly strapped for cash, giving it an incentive to speed up privatization as an alternative to raising taxes, cutting spending or exhausting fiscal reserves."
------------
Privatization in Russia is basically another word for corruption, and here they go again. In the US privatization usually means contracting out, regulated monopolies, concessions, franchises, or vouchers. In Russia, as in Europe, it usually means selling off public assets that were built and maintained at public expense, and that now become the property of some plutocrat who is, of course, not paying huge bribes to government officials, so don't ask. In case you were wondering what could be left to privatize, after they sold off the government industries and farms in the early 1990s, the answer is simple: oil companies. After all, as somebody put it, Russia has become a big gas station that produces almost nothing the world wants except oil and gas:
"He added that "in the first instance" the state oil firm Rosen (ROSN.MM) was being prepared for privatization. Bashneft (BANE.MM), a smaller oil company that was renationalized last year, is also under consideration."
Here's the way they tell the story:
"Russia aims to raise 1 trillion rubles ($13.53 billion) from privatization next year, Finance Minister Anton Siluanov said in an interview aired on Thursday, signaling a major acceleration of plans to sell state assets. These plans, ambitious on paper, have largely ground to a halt over the last three years against the background of poor stock market conditions, exacerbated by a plunge in oil prices and Western sanctions linked to the Ukraine conflict. However, the same negative economic developments also mean that the government is increasingly strapped for cash, giving it an incentive to speed up privatization as an alternative to raising taxes, cutting spending or exhausting fiscal reserves."
------------
Privatization in Russia is basically another word for corruption, and here they go again. In the US privatization usually means contracting out, regulated monopolies, concessions, franchises, or vouchers. In Russia, as in Europe, it usually means selling off public assets that were built and maintained at public expense, and that now become the property of some plutocrat who is, of course, not paying huge bribes to government officials, so don't ask. In case you were wondering what could be left to privatize, after they sold off the government industries and farms in the early 1990s, the answer is simple: oil companies. After all, as somebody put it, Russia has become a big gas station that produces almost nothing the world wants except oil and gas:
"He added that "in the first instance" the state oil firm Rosen (ROSN.MM) was being prepared for privatization. Bashneft (BANE.MM), a smaller oil company that was renationalized last year, is also under consideration."
Cintra, Macquarie file bankruptcy on Indiana Toll Road | Examiner.com
Cintra, Macquarie file bankruptcy on Indiana Toll Road | Examiner.com
This is from September, 2014, but I just ran across it. This article lays out the way the "private-public partnership" (PPP) works, using the vaunted Indiana Toll Road privatization as an example. It starts when a state or local government decides that bonds, taxes, and user fees won't do to pay for a highway or other major infrastructure, so they consult some big investment bank about "creative financing" arrangements. The bank finds some gigantic pools of money floating around--sovereign wealth funds, hedge funds, and so forth--and they "lease" the asset from the state, using bonds to pay themselves back. The lease is for longer than the useful life of the asset. They set up a shell corporation--called a concessionaire--to operate the highway as a toll road. The toll doubles so the consumer gets hit, the investors get huge profits up front during the next 5-10 years, and then, when the asset is used up and needs work, they bankrupt the shell concessionaire. The losses fall on whoever gets stuck with the asset after the music stops, or the whole deal gets repackaged for a new investor. As the article explains:
"They structure the deals to be extremely long leases so that they can depreciate the road as an asset on their taxes. They put very little of their own money at risk as the equity (a mere $800 million out of a total $3.8 billion), and allow the private bond investors and/or taxpayers to take on the risk for the vast majority of its debt. The companies get their own equity back with some profit in just a few short years of collecting tolls. This leaves the other investors to the take the actual losses just about when the road is going to go bankrupt, and often when the road is also in need of major maintenance or rehabilitation."
And at the point the public is stuck with a used-up highway or other asset that they actually need to use to, you know, get to work. Now, you might think that this scam could be run only once, but it has been done many times. Does it surprise you that Texas thinks this is a great way to do things? What is even stranger is that this sort of thing is all the rage in Washington. The Treasury and DOT produced this paper: "Expanding the Nation's Infrastructure through Innovative Financing." It is quite enthusiastic about PPPs, despite the way they work out in practice, often to the detriment of the public:
https://www.treasury.gov/press-center/press-releases/Documents/Expanding%20our%20Nation's%20Infrastructure%20through%20Innovative%20Financing.pdf
But then again, given that so many Americans have been brainwashed into hating the very idea of government, it is no surprise that they allow themselves to become victims of privatization schemes. All you have to do is promise people that "the private sector" is more efficient and that you will eliminate "waste, fraud, and abuse," and ordinary people go along with schemes that cost them jobs and money and wreck the public assets they need. But don't try and tell them that, because they heard The Truth from Fox News or Rush Limbaugh.
If you need more, here is a three-part series that explains it.
This is from September, 2014, but I just ran across it. This article lays out the way the "private-public partnership" (PPP) works, using the vaunted Indiana Toll Road privatization as an example. It starts when a state or local government decides that bonds, taxes, and user fees won't do to pay for a highway or other major infrastructure, so they consult some big investment bank about "creative financing" arrangements. The bank finds some gigantic pools of money floating around--sovereign wealth funds, hedge funds, and so forth--and they "lease" the asset from the state, using bonds to pay themselves back. The lease is for longer than the useful life of the asset. They set up a shell corporation--called a concessionaire--to operate the highway as a toll road. The toll doubles so the consumer gets hit, the investors get huge profits up front during the next 5-10 years, and then, when the asset is used up and needs work, they bankrupt the shell concessionaire. The losses fall on whoever gets stuck with the asset after the music stops, or the whole deal gets repackaged for a new investor. As the article explains:
"They structure the deals to be extremely long leases so that they can depreciate the road as an asset on their taxes. They put very little of their own money at risk as the equity (a mere $800 million out of a total $3.8 billion), and allow the private bond investors and/or taxpayers to take on the risk for the vast majority of its debt. The companies get their own equity back with some profit in just a few short years of collecting tolls. This leaves the other investors to the take the actual losses just about when the road is going to go bankrupt, and often when the road is also in need of major maintenance or rehabilitation."
And at the point the public is stuck with a used-up highway or other asset that they actually need to use to, you know, get to work. Now, you might think that this scam could be run only once, but it has been done many times. Does it surprise you that Texas thinks this is a great way to do things? What is even stranger is that this sort of thing is all the rage in Washington. The Treasury and DOT produced this paper: "Expanding the Nation's Infrastructure through Innovative Financing." It is quite enthusiastic about PPPs, despite the way they work out in practice, often to the detriment of the public:
https://www.treasury.gov/press-center/press-releases/Documents/Expanding%20our%20Nation's%20Infrastructure%20through%20Innovative%20Financing.pdf
But then again, given that so many Americans have been brainwashed into hating the very idea of government, it is no surprise that they allow themselves to become victims of privatization schemes. All you have to do is promise people that "the private sector" is more efficient and that you will eliminate "waste, fraud, and abuse," and ordinary people go along with schemes that cost them jobs and money and wreck the public assets they need. But don't try and tell them that, because they heard The Truth from Fox News or Rush Limbaugh.
If you need more, here is a three-part series that explains it.
Wednesday, December 30, 2015
Homeowners uncertain of next step for flooded homes | KOMU.com | Columbia, MO |
Homeowners uncertain of next step for flooded homes | KOMU.com | Columbia, MO
This story is about Lake of the Ozarks, but it could just as easily come from any number of towns where people's homes are under water up to the roof line. The private and public costs to restore people's homes will be enormous.
This story is about Lake of the Ozarks, but it could just as easily come from any number of towns where people's homes are under water up to the roof line. The private and public costs to restore people's homes will be enormous.
'Trump Filter' Lets You Surf the Internet Without Seeing Donald Trump - Fortune
'Trump Filter' Lets You Surf the Internet Without Seeing Donald Trump - Fortune
Now if I can just get one for television.
Now if I can just get one for television.
Forecast for 2016 housing market
And the forecast is dinky condos for everybody under 40.
http://www.nbcnews.com/storyline/2015-year-in-review/will-housing-logjam-bust-2016-don-t-bet-mortgage-or-n487611?cid=sm_tw&hootPostID=4b446a66fb1cb79ce9b90b6d8e895280
http://www.nbcnews.com/storyline/2015-year-in-review/will-housing-logjam-bust-2016-don-t-bet-mortgage-or-n487611?cid=sm_tw&hootPostID=4b446a66fb1cb79ce9b90b6d8e895280
Thursday, December 24, 2015
FBI: Financial Fraud Inside the Investigation of a Las Vegas Construction Boss
"When a federal judge sentenced former Las Vegas construction boss Leon Benzer to nearly 16 years in prison in August, it marked a final chapter in a $58 million fraud scheme that took investigators nearly a decade to unravel. Over a period of many years, Benzer brazenly sought to gain control of numerous condominium homeowners associations (HOAs) in the Las Vegas area to secure lucrative construction and other contracts for himself and additional conspirators. To date, 44 individuals, including numerous state officials, have been convicted of crimes in connection with the fraud—which has been described as one of the largest public corruption cases in Nevada history."
https://www.fbi.gov/news/stories/2015/october/financial-fraud/financial-fraud
------------
This is a summary of the Benzer HOA takeover fraud investigation. The photo above is an undercover operative receiving a $20,000 bribe from one of the principals in the fraud. It was in a baby wipes box. How domestic.
Monday, December 21, 2015
Illinois condo law author arrested for 1973 murder
"He helped craft laws on which hundreds of condominium associations in Illinois are based but he is also a suspect in two murders. On Monday afternoon, Dr. Donnie Rudd, age 75, will be in a courtroom in Rolling Meadows, northwest of the Loop, for his first hearing since being extradited from Texas."
---------------
Donnie Rudd is a man of many parts--lawyer, scientist, maybe murderer? At one time he had a law practice in the Chicago area with 2000 clients, most of them HOAs. He was one of the co-authors of Illinois condo law: "Rudd has degrees in law, bioscience, bioengineering, and chemical engineering. He has more than 40 patents, mostly related to cell regeneration, repair of human tissue, and curing diseases to vital organs. He has written 15 books and more than 160 professional publications. In 1983, with state representative Ellis Levin, he co-wrote amendments to the Illinois Condominium Property Act."
However, the police also think that he murdered two people, so there's that.
http://www.loopnorth.com/news/mobi/murder1221.htm
Sunday, December 20, 2015
Isolated example number 12,345
DENVER - The owner of an Aurora-based community association management company voluntarily surrendered his license after there were complaints he was diverting homeowner association funds for his personal benefit, the Colorado Division of Real Estate announced Friday.
David W. Martin is the owner and designated manager of PMG Enterprises Inc., a community association management company.
http://www.9news.com/story/news/local/2015/12/19/owner-of-aurora-hoa-management-company-allegedly-diverted-funds/77631880/
Massive HOA faces claims of assessment collection abuse
"Poinciana Villages, with nearly 70,000 residents and 23,000 homes, would be one of the largest cities in Central Florida if it were a municipality. Instead, it's one of the largest private homeowners associations (HOA) in the United States. But now the HOA is under fire for what residents say is a persistent and ongoing effort by outsourced debt-collection agencies to inflate back dues with thousands of additional dollars in legal fees and late charges. Some of the estimated 4,000-plus homeowners whose debt was sold — more than 1 of every 6 homes in the association — say they've never received a line-by-line breakdown of what those fees actually are. And by the time they're able reach someone at the agency, their late fees and legal fees have doubled, tripled, quadrupled and more. At issue, residents say, is the possibility of thousands of owners losing their homes because of ballooning debts that were originally only in the hundreds of dollars."
-----------
Because there aren't enough stories of individual owners losing their homes in HOA foreclosures with bogus charges, so it is time for mass-production foreclosure, using private debt-collection agencies.
http://www.orlandosentinel.com/news/osceola/os-poinciana-hoa-turmoil-20151219-story.html
-----------
Because there aren't enough stories of individual owners losing their homes in HOA foreclosures with bogus charges, so it is time for mass-production foreclosure, using private debt-collection agencies.
http://www.orlandosentinel.com/news/osceola/os-poinciana-hoa-turmoil-20151219-story.html
HOA fraud king Leon Benzer gets 15 1/2 years in prison
"Former construction company boss Leon Benzer, the man behind the massive scheme to take over and defraud Las Vegas-area homeowners associations, was sentenced Thursday to 15 ½ years in federal prison. U.S. District Judge James Mahan also ordered Benzer to serve five years of supervised release after prison and pay $13.4 million in restitution. Benzer, 48, who pleaded guilty to conspiracy, fraud and tax evasion charges, is to surrender to prison authorities Nov. 6."
------------
So ends the biggest white collar crime prosecution in the history of Las Vegas--eleven HOA taken over by a fraud ring and used to steal millions of dollars. But (see post below) we are not going to see the evidence, which remains sealed by virtue of the US Attorney's office and the federal judiciary. My view is the public needs to learn from this case. We have here the worst example ever seen of HOA private governments being taken over by vendors--contractors and lawyers, mainly--who used them like ATMs. These were people who knew the HOA industry from the inside--who knew how easy it can be for a small group of self-interested people to take over an HOA board of directors, because of the culture of non-participation that prevails in far too many common interest developments. This is a serious problem all over the country--in fact, all over the world. Nothing is going to change this situation--most people just don't want to be bothered with paying attention to the affairs of their HOA. Their lives are too busy already. The day will never come when owners live up to the ridiculous expectations that this institution imposes on them. The people who own units in CIDS are just consumers of a mass-produced product, and they need to be protected against the possibility that predatory industry insiders might take advantage of them. I realize that most lawyers, managers, and contractors are trustworthy, but owners have insufficient protection against those who are not. The prosecutors and judges need to open these files so the public and the media and the academy can see exactly how this scheme worked. Then legislators can take the necessary steps to fix this--starting with mandatory full public disclosure of the financial status of every single HOA and condo association.
http://www.reviewjournal.com/news/las-vegas/vegas-hoa-crime-kingpin-leon-benzer-sentenced-15-12-years-prison#st_refDomain=www.facebook.com&st_refQuery=/
------------
So ends the biggest white collar crime prosecution in the history of Las Vegas--eleven HOA taken over by a fraud ring and used to steal millions of dollars. But (see post below) we are not going to see the evidence, which remains sealed by virtue of the US Attorney's office and the federal judiciary. My view is the public needs to learn from this case. We have here the worst example ever seen of HOA private governments being taken over by vendors--contractors and lawyers, mainly--who used them like ATMs. These were people who knew the HOA industry from the inside--who knew how easy it can be for a small group of self-interested people to take over an HOA board of directors, because of the culture of non-participation that prevails in far too many common interest developments. This is a serious problem all over the country--in fact, all over the world. Nothing is going to change this situation--most people just don't want to be bothered with paying attention to the affairs of their HOA. Their lives are too busy already. The day will never come when owners live up to the ridiculous expectations that this institution imposes on them. The people who own units in CIDS are just consumers of a mass-produced product, and they need to be protected against the possibility that predatory industry insiders might take advantage of them. I realize that most lawyers, managers, and contractors are trustworthy, but owners have insufficient protection against those who are not. The prosecutors and judges need to open these files so the public and the media and the academy can see exactly how this scheme worked. Then legislators can take the necessary steps to fix this--starting with mandatory full public disclosure of the financial status of every single HOA and condo association.
http://www.reviewjournal.com/news/las-vegas/vegas-hoa-crime-kingpin-leon-benzer-sentenced-15-12-years-prison#st_refDomain=www.facebook.com&st_refQuery=/
Evidence in Las Vegas HOA prosecution remains sealed
"A total of 43 defendants either pleaded guilty or were convicted at trial in what prosecutors say is the largest public corruption case ever in Nevada. Prosecutors opposed dissolving the two protective orders — especially the one that covers the leak investigation, which focused on concerns that Quon was getting confidential information from the Nevada U.S. attorney's office and possibly elsewhere. The Justice Department in Washington took the reins of the HOA investigation after those allegations surfaced. The leak investigation delved into personal and romantic relationships of public officials who have not been charged criminally or disciplined administratively, Justice Department prosecutors argued. Foley shared the government's concerns in his order. "The government has made a sufficient showing that disclosure of these documents would potentially cause unfair prejudice to the individuals who were the subjects of the investigation, but to whom no charges, criminal or administrative, were ever brought," he wrote."
-----------
It has been reported since the start of the prosecution that Washington took over the prosecution because people in the local US attorney's office, and possibly one or more judges, were passing information to attorney Nancy Quon, one of the principals in the fraud ring. She committed suicide. And now the US attorney's office and the federal judiciary have decided that nobody gets to see the evidence in the HOA fraud case--6 million pages of documents. Is that because it includes evidence that might make the US attorney's office and the federal judiciary look bad?
http://www.reviewjournal.com/news/las-vegas/mass-evidence-huge-hoa-scheme-remains-under-wraps
-----------
It has been reported since the start of the prosecution that Washington took over the prosecution because people in the local US attorney's office, and possibly one or more judges, were passing information to attorney Nancy Quon, one of the principals in the fraud ring. She committed suicide. And now the US attorney's office and the federal judiciary have decided that nobody gets to see the evidence in the HOA fraud case--6 million pages of documents. Is that because it includes evidence that might make the US attorney's office and the federal judiciary look bad?
http://www.reviewjournal.com/news/las-vegas/mass-evidence-huge-hoa-scheme-remains-under-wraps
Wednesday, November 25, 2015
Police bust weekly mahjong game played by elederly women
http://tampa.cbslocal.com/2015/11/24/police-bust-weekly-mahjong-game-played-by-elderly-women/
Local cops, having solved all the other crimes, decided to bust a mahjong game. The perpetrators range in age from 87 to 95. Who called the cops? Condo management. It would appear that in fact they didn't violate any law, but I suppose the giant wheel of justice will have to grind all this into dust and answer that question.
Local cops, having solved all the other crimes, decided to bust a mahjong game. The perpetrators range in age from 87 to 95. Who called the cops? Condo management. It would appear that in fact they didn't violate any law, but I suppose the giant wheel of justice will have to grind all this into dust and answer that question.
Tuesday, November 10, 2015
When residents clash with homeowner associations, some states step in
"Has your homeowner association fined you for painting your house purple? Have you ignored requests to pay annual maintenance fees for your condo’s clubhouse and swimming pool? Has your association refused to let you see its financial documents These are the types of conflicts that frequently erupt between residents and homeowner or condo associations. Some can get quite heated – or downright nasty. A small, but growing number of states are trying to tackle the problem by creating ombudsman or homeowner information offices to handle the deluge of complaints that often land at state and local agencies. The goal is to educate residents and association board members about their rights and responsibilities under the law and help settle disputes before they wind up in court."
-----------
More state oversight of HOAs and especially condo associations is necessary, but it isn't clear what form it should take. I think ombudsperson offices are a good start, but not everybody agrees with that approach.
http://www.myrtlebeachonline.com/news/business/real-estate-news/article41217018.html
Wednesday, November 04, 2015
SO MUCH FOR THE DEATH OF SPRAWL: AMERICA'S EXURBS ARE BOOMING
Joel Kotkin shows that sprawl and the exurban lifestyle are as popular as ever. This means more new HOAs and condos, so the die-hards who think they are going to abolish CID housing may want to read this.
"It’s time to put an end to the urban legend of the impending death of America’s suburbs. With the aging of the millennial generation, and growing interest from minorities and immigrants, these communities are getting a fresh infusion of residents looking for child-friendly, affordable, lower-density living."
"It’s time to put an end to the urban legend of the impending death of America’s suburbs. With the aging of the millennial generation, and growing interest from minorities and immigrants, these communities are getting a fresh infusion of residents looking for child-friendly, affordable, lower-density living."
Wednesday, October 28, 2015
New Jersey: More accountability for HOAs?
"More than 1 million New Jersey residents live in communities with homeowners associations. The top Republican in the state Senate said people pay hard-earned money in dues to these associations, and they deserve some transparency. Senate Republican Leader Tom Kean (R-Westfield) said he is pushing to expand and update the “Planned Real Estate Development Full Disclosure Act,” which hasn’t been changed since 1993.
“This legislation focuses on accountability as well as transparency,” Kean said. “It’s time to update a 22-year-old law.”
Kean has introduced the “Association Homeowners’ Protection Act of 2015″ (S3235). The measure would require:
- Homeowners associations to provide a copy of homeowners’ association insurance policies, which are needed to start personal home insurance claims processes. The association member would have to request the copy and it would have to be sent via email within 24 hours, or hard copy within 48 hours.
- Homeowners associations to offer a 24-hour emergency phone number for members.
- Homeowners associations to provide information including contact numbers for board members, as well as the most recent budget and all insurance information.
“That should be a transparent flow of information, so people have access to how their money is being spent,” Kean said. “The over 1 million New Jersey residents who are part of these associations pay hundreds, if not thousands, of dollars every year to be part of these associations. It’s simple common sense that they should have access to timely information.”
Is that what you call R-E-S-P-E-C-T?
"Pontiac — A Bloomfield Township condominium association wants to foreclose on a property owned by legendary soul singer Aretha Franklin for non-payment of more than $11,563 in fees and maintenance assessments. The lawsuit, filed by the Hills of Lone Pine Association, an exclusive gated community in Bloomfield Hills, names Franklin, Ally Financial Inc. and CitiMortgage Inc. as responsible for the unpaid assessments on a 4,148-square-foot condo valued at $695,380."
-------------------------
Monday, October 26, 2015
State condo ombudsperson offices becoming "a thing"
"Has your homeowner association fined you for painting your house purple? Have you ignored requests to pay annual maintenance fees for your condo’s clubhouse and swimming pool? Has your association refused to let you see its financial documents?
http://www.columbian.com/news/2015/oct/25/states-stepping-in-to-help-resolve-hoa-conflicts/
These are the types of conflicts that frequently erupt between residents and homeowner or condo associations. Some can get quite heated — or downright nasty.
A small, but growing number of states are trying to tackle the problem by creating ombudsman or homeowner information offices to handle the deluge of complaints that often land at state and local agencies."
--------------
Yes, they are. Because the old model--no regulation of the relationship between BODs and members except civil litigation--is failing.
http://www.columbian.com/news/2015/oct/25/states-stepping-in-to-help-resolve-hoa-conflicts/
Monday, October 19, 2015
Active duty sailor loses home to unpaid HOA fees
Here we go again:
"JACKSONVILLE, Fla. -- The home Mark Bryant purchased in 2006 is modest but he loves it. "I worked real hard for my house," he said. While stationed at Mayport, the gunner's mate purchased the house in the Creekside subdivision with hopes of returning to Jacksonville when he retires. "Now it is being taken away from me due to a wrongful foreclosure," he said. Bryant is still active duty in the Navy, stationed in Virginia. He lost his home because of $750 in unpaid homeowners association fees. "It has been stressful," said Bryant. How did this happen? His documents show he was stationed in Bahrain during the two years the fees went unpaid -- 2012-2014. Bryant said he was never notified. Court records show an unnamed woman was served in Virginia at a previous address. Bryant said the unnamed woman in the record is not his ex-wife. "When I got back from deployment October 2014," said Bryant, "there was an eviction notice on the property, and that is the first time me actually knowing." The HOA fees went from $750, but when you add interests, late fees, court costs, attorneys fees, it jumped to $4,734.03. The property was foreclosed and sold for $10,300."
http://www.firstcoastnews.com/story/news/local/consumer/on-your-side/2015/10/16/i-was-in-bahrain-and-never-got-a-notice/74078256/
"JACKSONVILLE, Fla. -- The home Mark Bryant purchased in 2006 is modest but he loves it. "I worked real hard for my house," he said. While stationed at Mayport, the gunner's mate purchased the house in the Creekside subdivision with hopes of returning to Jacksonville when he retires. "Now it is being taken away from me due to a wrongful foreclosure," he said. Bryant is still active duty in the Navy, stationed in Virginia. He lost his home because of $750 in unpaid homeowners association fees. "It has been stressful," said Bryant. How did this happen? His documents show he was stationed in Bahrain during the two years the fees went unpaid -- 2012-2014. Bryant said he was never notified. Court records show an unnamed woman was served in Virginia at a previous address. Bryant said the unnamed woman in the record is not his ex-wife. "When I got back from deployment October 2014," said Bryant, "there was an eviction notice on the property, and that is the first time me actually knowing." The HOA fees went from $750, but when you add interests, late fees, court costs, attorneys fees, it jumped to $4,734.03. The property was foreclosed and sold for $10,300."
http://www.firstcoastnews.com/story/news/local/consumer/on-your-side/2015/10/16/i-was-in-bahrain-and-never-got-a-notice/74078256/
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