MLM Directory

Another Home Owner Association question?

What do you think about the President of the HOA Board pooling funds with his adult children to buy one of the condos here that was foreclosed in by the HOA/Board for non-payment of HOA fees? It seems the HOA attorney worked quickly to seal the deal, and they got the unit for tens of thousands below market value. Legal, unethical, illegal or just one of the HOA "perks" (In California- and you know what housing costs are like here! Let's say he got the condo in 2006 for a 1996 price.)

Public Comments

1. Unethical but legal, alas. HOAs perform no useful function that cannot be solved by good neighbors working together. They should be banned.
2. Call it what it want, but the HOA collects it.s fees because the unit is now sold. My friend repo's homes for a living, and sells them to his friends (I have not bought one myself) just to make a quick turn around. It saves everyone in the long run, as the longer is sits vacant the more likely it is to get vandalized. Ask the president to keep you informed the next time something like this happens. It could help you get one cheaper too.
3. I guess the question you need to ask or look up yourself is in the HOA by-laws, which should have instructions on how the forclosed property is to be resold. I think its a bit unethical from what you described. But my 2 cents on HOA foreclosing on condos/homes for piddily small amounts of money. I think that HOA shouldn't be able to foreclose, they should have to go through small claims court.
4. Never heard about this being done. Might want to consult with a local attorney or read over your HOA documents. Sincerely, Richard M. Johnston, GRI, ABR, e-Pro RE/MAX OTB ESTATES President's Advisory Council Member Serving Sherman Oaks, Encino, Studio City, Tarzana, CA