HOA judgment TEXAS

Hi,
Our governing documents list "judgment" as a potential option when a borrower is not paying with little details as to the process. Our docs go on to list lien/foreclosure which it outlines in great detail. Have any other HOA's adopted judgments into their collection process? We typically do a judicial foreclosure as require in Texas.

This adds $5000 or so to the homeowners balance due, takes 2 years and the HOA usually never sees a dime of that money back. It's a lose-lose for everyone, both the homeowner and HOA.

I'm on a board with 850 homes and I have experience in mortgage foreclosures. Some of my bank clients, when the loan is a small 2nd, opt for a civil judgment in lieu of a foreclosure. It only costs them and the borrower about $400 in fees, which is typically recovered through wage garnishment.

I read somewhere in TX that wage garnishment can only be used for student loans, taxes, child support or alimony.

I guess my question is, if we cannot garnish wages in TEXAS, then why does the law allow for judgment. What does one hope to gain from the judgment if it is not allowed to be enforced through a wage garnishment?

Any advice from a prior TX HOA board member or professional would be helpful.

Thanks,

Ruth

Of course we will be consulting our attorney's before doing anything, but before I sound like a dope and ask the attorney, I thought I'd attempt to gain some information. I have worked with our attorney's many times in the past and I work with about 15 different real estate attorneys on work related matters in states other than my own. I'm not trying to seek a legal opinion or make decisions based on a forum, simply trying to see if other HOA's in Texas are obtaining judgments.

*it seems that it is in an attorney's financial interest to suggest a foreclosure rather than a judgment, since a foreclosure is about $5k in legal fees and judgment is $400, so an outside perspective can be healthy.

I feel like I fully understand the differences in judgments vs. lien/foreclosure actions. My question is, DO ANY HOA's in TEXAS exercise the use of judgments, when it might make sense to do so, vs. a foreclosure and lien.

I see in the law that it states "judgments may be obtained" but for some reason I cannot locate a single HOA in Texas that appears to be obtaining them and explain the benefits of this method over a foreclosure.

I can see the post-foreclosure benefits of a judgment when the foreclosure did not cure any or some of the obligations of the debt to the HOA. I am really curious about the use of a judgment BEFORE a foreclosure as a stand alone tool, before a foreclosure has to occur.

For instance, in TX you cannot garnish wages, but you CAN levy a bank account if it is not directly tied to disability, SS or a pension. I'm wondering if through the use of a judgment, a TX HOA can levy a bank account, which would reduce the need to go to foreclosure, since the homeowner paid the debt through the levying a bank account, when that option is possible.

Anyone doing this? I know in CA and other states, I've heard of an HOA using a judgment in a similar manner, but I cannot find a TX example.

I don't think we can garnish wages in TX, since TX collection laws only allow for bank accounts to be levied and a few other methods of judgment collection, with the exception of student loan, taxes, child support or alimony judgments.

Maryland sounds like a good place for an HOA since it allows multiple avenues of collection which benefits the community and the homeowner. Texas appears to be more of a debtors haven. :-)