Foreclosure on board member's propery

Started by MarieL • 7 replies • 1425 views

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MarieL (Illinois)
Posts: 82

Posted:

I live in an Illinois Common Interes Community.I also serve on the board. By accident I recently learbed one of the board member's property is in foreclosure.In addition the taxes on this property are delinquent for the tax year 2009. This person is attemping to get refinancing,but was turned down initally... They have now gone to a different souce in an attempt to get refinancing Their assessments remain 3 months is arrears,the limit allowed before a lien is filed on the property never more than this.The board officers, who learned of this foreclosure last July, have kept it a secret from the board and have not filed a lien on the pooperty..
What is the board's duty to the association and homeowners in a situation like this??? Are they acting prudent by feeling sorry for this board member-homeowner by not filing a lien on this property, still in foreclosure? .

SusanW1 (Michigan)
Posts: 5,202

Posted:

In my HOA, this person would not even be sitting on the board, since board members must be "member in good standing" i.e. current in assessments.

RobW (California)
Posts: 279

Posted:

I would check your HOA's bylaws and CC&Rs. You may find that an officer or Director must be a member in good standing, meaning all money owed to the Association is current.

Dig deep.

Rob

BrianB (California)
Posts: 2,820

Posted:

the board's duty is to treat every member of the HOA in a fair and similar manner, regardless of their positions or level of volunteerism.

AnnD2 (Connecticut)
Posts: 76

Posted:

Given the enormously complicated and difficult economic times we face, I think it is completely appropriate for member's facing financial difficulties to be treated with compassion and flexibility. On the other hand, I am always suspicious of secrecy. These kinds of matters are appropriately handled in executive sessions which provides for confidentiality; but all those on the board should be included in these discussions and meetings, so that a plan that is both compassionate and responsible can be worked out. A board has to walk a thin line between being understanding and reasonable while at the same time being fair and accountable to the entire membership.

JohnO6 (Georgia)
Posts: 424

Posted:

Ann- while your prose is great, the "devil is in the details".

The overarching philosophy should be as simple as possible, "Establish the rules you want, and then follow them".

This goes for CCRs, By-laws, and Rules & Regulations.

The use of variances (if even allowed) should be reserved for extraordinary, unpredictable, truly unique situations.

Otherwise, the integrity of the organization and the responsibility to its members rapidly become suspect.

SusanW1 (Michigan)
Posts: 5,202

Posted:

I wonder if someone would question a board member who is not current in assessments voting on spending issues? Talk about a 'conflict of interest"!! - That person is benefitting from decisions made by the board, since they are not contributing to the needed revenues - and has an unfair advantage above all other members.

Rob said it best: ALL members need to be treated equally and fairly.

Ask that person to resign, or remove them from the board.

SteveM9 (Massachusetts)
Posts: 3,699

Posted:

He needs to be replaced.

Do you really want someone who cant handle personal finances making decisions for your money and others? No.

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