Bank forclosed prop. do the vote

Started by VictorB1 • 6 replies • 1353 views

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VictorB1 (Texas)
Posts: 1

Posted:

A local bank has forclosed on about 80 lots. of our small 200+ subdivision. A lady member has said that the bank has given her the proxy vote authority to creat a voting block to take over the board. New Texas law requires each ballot to be signed by home owners. Can she she just do this.
In addition she quotes that all property owners can not be kept from voting even if our by-laws state that they must be up to date with our annual $20.00 fees.
Victor in TEXAS

BrianB (California)
Posts: 2,820

Posted:

can't answer the question about your CC&R's, late payments and voting rights, it should be in there, however. A google check of Texas laws would show you if there's anything by the state that overrides your CC&R's.

As for the other: in Missouri, folks always used to say "Show me". Still darn good advice.

I would require the woman with the "block of proxies" to show me each proxy for each lot, signed by the legal representative/owner of the lot (ie, the bank). And, the forms should be the HOA approved Proxy forms.

LarryB13 (Arizona)
Posts: 4,099

Posted:

Unless state law gives a property owner an absolute right to vote in an association's elections, voting is subject to the restrictions in the CC&R's and/or bylaws. If the association documents require the owner to be paid up to vote your association would be within its rights to rejects the bank's votes until they pay.

You said that the bank "foreclosed." Does this mean that there is now a deed in the bank's name for each of those properties or that the bank is in some stage of the foreclosure process? Without a deed in its name, the bank cannot cast a vote no matter how certain the outcome of a foreclosure will be.

If the bank now has title to those 80 homes and they have not paid the assessments, the association would not be impeded by a superior lien should it choose to foreclose for non-payment. Ironic, huh?

SteveM9 (Massachusetts)
Posts: 3,699

Posted:

Sounds very suspicious. I cant imagine any bank acknowledging a proxy request, never mind signing one.

LarryB13 (Arizona)
Posts: 4,099

Posted:

Quote:

Posted By SteveM9 on 01/14/2013 3:59 PM
Sounds very suspicious. I cant imagine any bank acknowledging a proxy request, never mind signing one.

Yes it is suspicious. Why would the bank care? They just need to unload those foreclosures and recoup some of their loss.

SteveM9 (Massachusetts)
Posts: 3,699

Posted:

I would be friendly and advise the woman you will be authenticating the proxies, and if the proxy votes are found to be fraud, you will be contacting the police to press charges.

LarryB13 (Arizona)
Posts: 4,099

Posted:

Alternatively, you could go to the bank yourself and seek their proxies for yourself. All's fair.

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