foreclosures on non payment of fees

I recently became a board member of an HOA in Maryland. I was dumfounded to learn we have less then $40,000 in our reserves. In thirty years they have never assessed a late fee or fine against any homeowner.
Thirty to forty homeowners refuse (some as long as three years)to pay the monthly association fees.
Before I joined the BOD I had asked about this and was told they put a lien against the homeowner and when they sell we would get the monies owed. (this has yet tgo happen)
I haved read on other HOA sites where California, Texas, can foreclose on the property without going to court.
Florida, I understand has to go through the court process.
Does anyone know the policy for Maryland?
Thanks:
Jim

johm
We have called for a special meeting (aug 15th)to put before the association the intent to charge $15.00 late fee per month. We are a small community with 171 units and only charge $60.00 per month. I read on the Maryland HOA site that an attorney feels 1.2 million would be a comfortable amount to have in reserves for a community our size.
Thus my bewilderment that we have the small amount (under $40,000)on hand.
I have seen reports from our attorneys where we, the association ends up paying their fees because they are unable to collect.
That is why I don't understand the lack of will to proceed with foreclosures. It's not the fault of the treasurers but, seems to hinge on the lack of will of our MC.
I don't know how to independently find out the rules of Maryland, on foreclosures.
Thanks for your input.

Its fairly easy to find out.
1. The atty that say 1.2 million in reserves for hoa in maryland is an unknowing bs artist. Many are. I am in florida and if we have 50k in reserves im looking to use it for something personally.

Anyway call your local state senator from your area. Punch his name into your browser get the phone number oh their office.
Then schmooze along who ever answers the phone. Ask for a legislative asst of the senator. Then ask the magic question,What law covers hoas in our fare state. They will give you the offical title. Punch that into your computer and do not print it. I guarantee it is long. Do not even read the condo law cause it is really insane.

Now you know the state law only print the portion that is of use to you period.

If that dont work go to cai.com and convince your bod to join this great organization. If your on the east coast it has a mountain of info on the site about different state laws.

Find out who is the biggest gun in maryland as far as lawyers for hoas are concerned. Ask your attys who is the best in the state.
Then send me a email at [email protected] for the balance of the info.

Please please please get your own copy of the docs for your hoa and read the hell out of them. Use a magic marker yellow and buy a pad of sticky tabs and when you find items of interest mark them. Volunteer to be the nastiest job on the bod so you have to be heard at every meeting and after you find what you want nail the peace niks on your BOD. All to often people on bod,s forget they are running a business. key word a business. Let the social director play nice. Move into the treasurers position cause you will be looked at as a smart person. This is not done overnight so place nice till then. In dealing in a hoa build your team slowly and a little bit at a time. its on your side. Think long term.

PS for 9 years in the dead center of the worst hurricane zone in florida we never had a reserve over $500.00 dollars. I became treasurer cause treas must sign all checks. thats in our docs. He who signs the checks rules the team.

Got some folks on the board cause we had no issues, made the meetings civilized ( We actually had a guy come to a meeting and showed his gun thru a open shirt) and now we got brand new monuments in this month for the 2 entrances, brand new clubhouse, 12 brand new parking lots and we got $150,000. in a savings account in the hands of a federal credit union.

Good luck in your endevours

jack

josephw
A posting of yours to another forum question is what I used to get to my states hoa site. The attorneys listed is the Thomas Shields Group, who I have emailed three times. (Have received no response) Even to a question that if they could not be of help, if they could/would refer me to someone who might.
One of the gatekeepers for hoatalk told me Maryland, is one of the most difficult hoa's to follow. Our states site is constantly changing.

johnm3
Thanks for the advice. I have only been on the board since May, and was asked immediately if I would like to be the President. It was our annual meeting and election time. We have nine members of the BOD. I suggested my waiting to see how the board operates before becoming the president but, in my short time it does not look that difficult. Just time consuming.
When I got on the board we had three vacancies.
I have been able to get three members on the board who are tired of the do nothings and I think we will be able to make a change.
You talk of the small amount in your reserves. Would you not have to make a special assessement if your hoa has some sort of emergency?
Ours is an hoa in a private community and we are constantly told this could happen if we do not build our reserves.

Dear Ed: If I ever saw that hue an amount in the reserves I would scream like a wounded ape. Where is your HOA Located there is no decent reason to have such a huge un-necessary amount in your reserves.
Somebody is doing something wrong.
First I am sure your city collects garbadge
Second no matter what state you are in you have a responsibility to not overcharge your members what so ever. You brag, personally I would be ashamed.

We are dead center in a hurricane zone in Florida east coast 10 miles in land from the ocean. Got it. We have never spent more than 10 to 12000 dollars for repairs after a cane.
What are you guys saving for ceeding from the usa. Starting your own planet? Please explain how you justify this amount in a savings account?

If I have 100 K I feel like I have just arrived in heaven. I have 3 lakes needing constant work, 5 miles of roads, and about 20 acres of grass and other amenities and I am fighting tooth and nail to get a modular building in the community for a clubhouse. We are doing a lease buy-back on the clubhouse thats how we bought it. But the city building dept is bustin my chops big time......

Jim,

I appear to be a little late with my suggestion. I am a homeowner in an HOA. We are in the process of becoming a POA. From what I have been told about POAs, I think it would benefit your community greatly. I’m not sure if your state can have a POA or not, I’m not sure of the particulars involved.

Have you had much success with these delinquencies?
Maybe Community Associations Network would be of help to you in your state.

Best of luck
Chuck W.

A POA is a Property Owners Association. Basically the owners buy the lots and build on them. Very similar to a HOA - Homeowners Association in structure and operation.

Joe

I was a little late in asking Chuck, what a POA was so thanks John, and Joe.

To Joe: Now I'm a little confused about the answer. Chuck, said he is a homeowner in an HOA and they are in the process of becoming a POA. You explained what a POA is, and said they are similiar to an HOA. I am on the BOD of an HOA so from what I gather from your answer I have to ask why an association would change?. What would be the benefits if any?

Chuck: We "were" going the putting a lien on their homes route, but think the best way is to go after garnishing their pay. One would think a homeowner might be a little embarrased to have their employer know they are not meeting their financial obligations, but its surprising how many just don't care. We have just recently (August)begun receiving payments from a homeowner who has not paid assessements for the past three years. It may sound harsh but, it is like one of the other responders on this forum stated. These people are stealing. We are a private community of 172 relatively expensive townhomes and have to pay for our water, sewage, garbage pick-up, lawn maintenance (common areas) and snow removal. These folks (between 30 to 40 homeowners) think they should get these necessities for free.

Thanks for the replies:

Jim

JamesC,

There is a post written “HOA vs. POA” Follow this closely. I’m sure this will help you significantly.

Chuck W.

Chuck:

Thanks for pointing me to the previous "HOA vs POA" posts. Great info
Would have been a lot of searching without your suggestion.
Jim

James, the first thing I think you need to do is fire the Management Company. It sounds like ours, don't want to work, just get paid.

I live in AZ and when I first went on the board of our 199 unit HOA we had about $12K in assessments that were in arrears. I questioned why no liens were filed and got BS from the president. Well he moved and since we have a policy voted on by the board that tell all owners when they are late what happens and when. We lost some assessments because no liens were filed and the home owners filed bankruptcy. Now we file liens and after that start foreclosure. So far just the liens and threat of foreclosure has worked. Now we have about $1K in arrears. Best part, lien paperwork is paid for my the home owner that is late.

I might add, we give the home owners a change for a payment plan and as long as they abide by the agreed on payment plan only a lien is filed.