Does the name Christopher Banda sound familiar to you?
If it rings a bell, it's probably because his case got the attention of the Justice Department. Last year, Air Force Master Sergeant Christopher Banda was in danger of losing his home. Due to a mix-up with his bank, he couldn't pay the HOA fees while he was deployed in Turkey.
Since he wasn't notified by the bank, the Wolf Creek HOA started the foreclosure process. Don't worry. The story has a happy ending, but you might be wondering, what's an HOA foreclosure all about?
Here's what you need to know.
The HOA Foreclosure Process
An HOA foreclosure in San Antonio, TX, means the homeowners association is pursuing civil action against a homeowner for failing to pay fees and assessments.
HOAs do this to keep their respective communities operating efficiently. Note that most HOA boards consider this as a last step after exhausting other methods. They may also place a lien on a property.
Keep in mind that even if you're paying your mortgage, it doesn't mean you're safe from foreclosure. As a resident, the best way to check if your HOA has the right to foreclose on your house is to review a document known as a Declaration of Covenants, Conditions, and Restrictions (CC&R).
Usually, the process is for a lien to be placed against the homeowner so that the latter can settle their debts.
HOA Foreclosure vs. Lien: Understanding the Differences
Before foreclosing on your house, the HOA attaches a lien to your property. They may or may not record this with the country records office.
To remove this lien, you must pay the missed HOA fees and assessments, penalties and fines incurred, as well as attorney fees. The problem is that even if you stop an HOA foreclosure, a lien effectively prevents you from selling your home since it lacks a clear title.
Now, if you fail to remove the lien attached to your house and the foreclosure proceeds as usual, you don't have to pay your mortgage. This results in your mortgage lender foreclosing your property before selling it to a new homeowner.
How to Stop HOA Foreclosure
If you believe there's an error in your HOA's collection process, consult a lawyer. From the perspective of an HOA board, following the CC&R is crucial, considering wrongful foreclosures can result in lawsuits.
There are also cases where an HOA has no authority to foreclose. This is something homeowners can check in the CC&R.
Besides accounting mistakes, homeowners can also fight back if an HOA imposes an assessment that's not authorized in the CC&R. Either way, both residents and HOAs have to strictly follow CC&Rs to ensure that their actions won't lead to legal disputes.
Enforcing HOA Foreclosures in San Antonio, TX
HOA boards will sometimes have no choice but to enforce an HOA foreclosure, especially after exhausting all methods to get a homeowner to pay delinquent dues.
That doesn't mean homeowners can't do anything about it. If you're a homeowner in San Antonio, TX, and your HOA is managed by us, PMI Brightstar, we made this Homeowner Resources page just for you.
With over two decades of solving HOA issues, PMI Brightstar is all about creating outstanding experiences for our homeowners.
