Underwater in Colorado, thanks HOA! Need Help

Started by CK1 • 9 replies • 2354 views

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CK1 (Colorado)
Posts: 3

Posted:

I live in Colorado and we had a roof replaced on our condo. They started in Feb (in bad Colorado winter) ripped the roof off, and put new tar paper on and left. Three months went by and they didn't finish it. No tarp was put on the roof and I had water coming down my livingroom walls, windows, and the fireplace for three months! We called the HOA, the manager is always "in a meeting" or I get a voicemail. I then would email her as well. The contractor came in April and said that they couldn't do anything until everything was dried out. I come to find out that they didn't have enough materials to finish the job. So I don't understand why they would tear it off when they clearly new they couldn't finish the job. Everytime it rained or snowed, here comes the water! When they finally fixed it, they were suppose to replace the fireplace caps as well. They never did it.

Besides going through all this the economy tanks and so does my spouses hours at work. We had trouble for a while and decided to file for bankruptcy. We filed in Jan and it was discharged in May 2010. We paid HOA fees throughout the proceedings (we didn't know we could have put them in the filing) and when we gave up on making voluntary payments on the mortagage we moved out of the property.

We stopped paying HOA dues in October, and now it's Feb. The HOA has notified me that they put a lein on the property for unpaid dues and threatened to sue me for the unpaid dues. I'm pretty angry that they didn't fix the waterfall in the living room. I was ill and missed 10 months of work due to severe upper respitory problems. (I'm thinking that we could have had mold growing by now) They are suing me and still don't have to fix the problem?

I'm figuring I can do a few things about this:

Rent the condo until they forclose (I got a legal letter from a law firm that they were reatained to initiate foreclosure proceedings) and actually make money before they take the property over.

2. Let it be, and let them sue me, and they will get paid when the property is sold.
3. I am planning to get legal council and sue them for damages to the property.
4. Have parties in the property until they foreclose.
5. Pay the fees, and keep paying them through the nose and wind up out in the street. Foreclosure could take up to two years right?

Yes, I'm very angry. I try to do the right thing, everyday and I seem to get the shaft. I could use any advice on where to go from here. They are giving me until Feb 24th to make payment arrangements.

Please help!! I appreciate any advice you can give me, from your experiences, or your opinions, or fact.

Thanks in advance,

Annoyed, and underwater in Colorado!

JohnB26 (South Carolina)
Posts: 1,569

Posted:

You should NEVER stop paying HOA dues (assessments).

However,

If you have little or no equity in your condo ... just walk away from this nightmare.

If you have a major FINANCIAL (not emotional) stake in your condo you need to obtain COMPETANT legal help ASAP.

In any event SHAME, SHAME, SHAME on the Board of Directors.

RUN AWAY AS FAST AS YOU CAN, IF YOU CAN

SusanW1 (Michigan)
Posts: 5,202

Posted:

You've got two separate issues here;

1)your history of financial instability and

2) the leak from the roof, resulting in damage to your unit. BTW - was your unit the only one damamged?

Are you trying to link the two things together? I don't think you can. Sound like you would have lost the condo anyway.

Problem is, now all there is left is a damaged unit.

Let 'em have it.

PeterD3 (Florida)
Posts: 708

Posted:

The first thing to realize is that walking away from a house (and the accompanying mortgage note) is considered a foreclosure. Unlike car loans where credit bureaus look at a voluntary repossession in a slightly more favorable way than an involuntary repossession, there is no such distinction when it comes to home foreclosures.

A foreclosure will stay on your credit report for seven years and it will cause your credit score to decrease by about 150-200 points. The decrease in your credit score will cause you difficulties if you try to finance any other major purchases or apply for a new credit card. In addition, your credit report is accessible to your insurance company and your current and future employers. Typically, people with jobs in the government, military, or finance sectors should avoid foreclosure for as long as possible due to the repercussions of this “hit” on their credit score.

The most serious consequence of a voluntary foreclosure is that you will most likely be unable to purchase another home until the foreclosure “falls off” your credit report. During the period of relaxed lending practices in the early 2000s, many people with foreclosures as recent as two years old were able to obtain new mortgages.

Unfortunately, many people do not realize that these guidelines are no longer in effect, meaning that it will be very hard to obtain a new mortgage until seven years have passed.

CK1 (Colorado)
Posts: 3

Posted:

John,Susan & Peter,

I had no idea that the HOA fees, hazard insurance, upkeep on the condo all had to be taken care of by me after bankruptcy. My lawyer didn't say discuss HOA with us (probably won't even remember us), that's another story. I wanted them to offset the cost of the repairs to the unit from the fees owed. She informed me that they don't do this in Colorado. I wish I knew all this prior.

We moved and rented an apartment. We had to file for bankruptcy, car loans garnished my spouses wages 25%, and we would be out in the street. If they sue us and garnish wages, we will be on the street. Bankruptcy is suppose to be a fresh start? Yeah, right. It seems the HOA has everything going for them, and we have nothing going for us.

If I can't win in court for the damages, I will make sure everyone I know doesn't use WestStar Management, or don't live in a community with an HOA. You'll get screwed. It's just not right that they get away with not fixing the roof. I can just imagine how much ice is in the unit right now.

When they did the roof in 2005, prior to us moving in. The roofers cut all the AC lines up there. When they connected them again, they messed them all up. Our unit didn't work, but turned the unit below us compressor on, etc. I began to see all new AC units coming on the roof with cranes. That was already the start of it. The HOA said that they aren't responsible for the Ac units and the roofers did the best they could. Yeah ok!

Leaving tar paper on the roof for three months in the Colorado elements is outrageous!! It's pretty much principal for me now.
I don't have an emotional tie to the condo. It's empty, probably still leaking, and god knows when the foreclosure will happen. I hope it is soon, so I don't have to owe any more fees.

Do you think they can continue with legal action if I pay them $20 a month? As long as I pay something right? I will go to court and fight tooth and nail even though I probably won't win.

I don't intend to buy a property again in the next 5 yrs or so. I definitely will NEVER ever buy where there is a HOA, or covenant! This I know!

SteveM9 (Massachusetts)
Posts: 3,699

Posted:

You could sue the HOA claiming you were forced to move out due to the many months you could not live in the house, leaving you homeless, and and fell into financial distress due to paying a mortgage/hoa and renting another house on top of that.

The bank foreclosure could take anywhere from 1 month to 5 years. In that time the HOA will keep tacking on the dues and late fees. Best case scenereo would be to sue them (above) and then hand in the keys to the bank.

SusanW1 (Michigan)
Posts: 5,202

Posted:

This is why I asked if his unit was the ONLY one affected. I wonder why there was no lawsuit filed - either by a group or just him - against the HOA for neglecting to fix the unit,or at least for not repairing things in a timely manner.

Like I said, he seems to want to tie the two issues together. I suppose you would find a lawyer to do this, but it would cost $$ he does not have.

MelissaP1 (Alabama)
Posts: 13,836

Posted:

Where to begin... How about good news (sorta) for you. The HOA lawsuit. (A HOA should NEVER sue anybody as they are suing themselves) I would make sure you file a countersuit against them if indeed they are suing you. This should have been an option when they served you. Hopefully you can go to the court and modify the lawsuit for counter-suing. This shouldn't cost you money to counter-sue like it does to file a separate suit. So do this for the expenses of the repairs and such it doesn't have to be related to what they are suing you for.

The lien they filed is what should concern you the most. They have the right to sue you for their legal fees for filing the lien, all past dues, late fees, and interest on those backdues. They can NOT include fines unless it's in their laws. A good lawyer can fight this on your behave. Another thing they can lien you on is IF they had paid for those repairs on the property they can lien you for their money they paid out. Keep in mind they had to PAY out this money and have receipts or estimates.

I don't know the exact set up of your HOA. Mine we owned the house but the property around it was COMMON PROPERTY the HOA was responsible for. This meant the HOA could control the grounds and asthetics (colors, siding, fences)of the house but NOT the construction/maintenance of the home. You need to identify what exactly your HOA is responsible for and where your responsibilty lies. If they are suing you it is evident there is a miscommunication lacking on responsibilities.

You may be able to sue or put a mechanical lien on the contractor if you indeed hired them. The HOA has this same option and should be looking into that direction too IF they hired the contractor. It's their money. Either way, the contractor information is necessary to help your case.

Keep in mind that HOA stands for "Homeowner Association" which means that ALL the homeowner's have agreed to set or set rules that ALL homeowners should follow. A HOA is ONLY funded by it's members FOR it's members. So a lawsuit means if you sue your suing yourself and your neighbors. So IF you win a lawsuit against a HOA your also paying their legal fees with your dues. If they have to pay a large payout then your on the line for the special assessment to pay you. This is why a HOA shouldn't be filed but Liens/foreclosure is the BEST option.

Former HOA President

CarolF (Florida)
Posts: 435

Posted:

Melissa - CK1 said it is a condo, so I doubt that he hired the contractor to fix the roof.

MelissaP1 (Alabama)
Posts: 13,836

Posted:

That is an ASSUMPTION on your part. Each condo/HOA is different. More details are needed in knowing what responsibility the owner and condo has.

Former HOA President

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