POA Treasurer in a Texas 736 foreclosure

Started by RogerJ1 • 4 replies • 48 views

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RogerJ1 (Texas)
Posts: 550

Posted:

BTW, I have not been here in a while - the new site looks nice.

In late April 2026, the primary bank filed a 736 foreclosure (expedited, procedural type that does not require lengthy adjudication - judges usually just sign-off on them from what I read) on the property, in the POA of a Board member and current Treasurer. The POA's by-laws only allow members to be on the Board, so I guess her time is counting down unless she comes up with the money to pay her loan by August or September, the month the house will likely go to auction.

How would a "normal" Board handle this - leave her on the Board, strip her of being Treasurer?

ElleN (Idaho)
Posts: 1,333

Posted:

Explain the bylaw that requires that directors be HOA members. Ask her to resign. If she refuses, then the board informs her she is no longer on the board.

The treasurer position is different. Sometimes a HOA's governing documents allow non-members to be the treasurer. What do your HOA's governing documents say about the treasurer position?

TimB4 (Tennessee)
Posts: 21,059

Posted:

If anyone is having financial troubles, I would want to remove the temptation and remove them as treasurer.
Alternatively, I would have a second party reconcile the accounts.

If they have been serving on the Board without an issue, I wouldn't necessarily remove them from serving as Director.

BillD16 (Texas)
Posts: 971

Posted:

This is a bizarre situation, I doubt there’s any “normal” to how this gets handled.

As ElleN mentioned, some governing docs allow a non-member to serve as Treasurer. I believe they typically aren’t allowed to vote.

Similar to what Tim mentioned, it’s probably not wise to have someone with money problems handling the treasury. Additionally, I’d have to wonder if the person possesses the necessary money skills to be Treasurer. Although honestly, it’s not fair for me to judge this person based on the sparse information given. There could be circumstances where the person is upright and blameless and would continue to serve as an exemplary Treasurer.

If it were me, I’d try to proceed with compassion as well as proper fiduciary concern for the Treasury. I’d at least want to try to have an honest discussion with them about what is happening, and gently explain to them that if they lose the house, they’re also off the Board. I doubt it will be a surprise, but it would be uncouth to call them the day after they lose their house and tell them “Yer off the Board!” And I’d offer them a chance to resign in as dignified a manner as is possible. It’s worth noting that the Board is judging the Treasurer and saying they aren’t fit. The Treasurer will almost certainly be very unhappy about this.

If the person is out of touch with reality and doesn’t understand why they can’t continue as Treasurer, that would suck, but it’s also an additional reason for them to be relieved of the role.

Bill

HOA Board ex-President
Austin, Texas USA

“You can’t put too much water in a nuclear reactor”

SheliaH (Indiana)
Posts: 6,964

Posted:

Is this person still paying the assessments? If the house is about to be auctioned off, I suspect the owner hasn't kept up with assessments either. Most of the time, not paying assessments in full and on time means the owner can't serve on the board or vote in board elections. It's not necessarily odd that a non board member serve as an officer, but someone about to lose his/her home to foreclosure and the house is in the same community where he is she is serving as treasurer is beyond stupid. Are you saying your documents don't address this AT ALL?

If you can't keep your own finances in order, how in the hell can people trust you to oversee the association's finances which they help fund??? And yet, once again, you know the answer to this, but in case it has to be spelled out - this board needs to relieve the treasurer of his/her duties immediately if the person doesn't offer a resignation on the spot. The fact this hasn't been done already makes me question the judgment of the rest of the board's ability to run this community. How much mors foolishness are your neighbors going to tolerate before enough is enough?

If it is not right do not do it; if it is not true do not say it. Marcus Aurelius

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