Before 2013 when changes were made to how homeowner association assessments could be processed, some former property owners found their homes lost in Texas foreclosures and sold at ridiculous rates.

Eighty-one-year-old Wenonah Blevins fell behind on her HOA fees for two years. To cover her fees, Blevins did write a check in August 2000, for $800. With late fees, the amount of her Houston HOA fees was $814.50. The HOA did refuse her payment because it started proceedings against her; it did not cash her check. Was her HOA acting in good faith? Some tenants in developments would say no. New rules have stopped these HOAs from foreclosing on houses without letting homeowners pay back the fees they owe, in full.

Her $150,000 home was one of more than 99 homes sold at a foreclosure sale before rule changes were made. Were past HOA rules unfair to homeowners living in these developments? Blevins home sold the in April 2001 for a mere $5,000. A little over $4,200 went towards legal fees in the process. Some people were puzzled about the fact her house received a single bid and no one submitted a competing bid. The case raised question on whether HOA proceeding were fair in Blevins’s case. Should they have been allowed to sell her home and refuse her payment, even if it was late? Should she have been allowed to keep her house at that time? It is too late for Blevins to keep her house, now. Some good did come out of Blevins ordeal, as new rules were made to stop HOAs from abusing their power.

 

More than one case in these Texas foreclosures is somewhat fishy

Real estate agent, Pamela Bernhardt was finishing $48,000 in renovations to a rental house that she and her husband owed free and clear. She arrived to the house to find a small note taped to the front door. It stated the house had been sold at a foreclosure auction for $1,600. Bernhardt did not pay the $420 HOA assessment fee. The HOA attorney said were sent via certified mail, but Bernhardt insisted she did not get them. Her house sold to a new owner for only $1,600.

Today, HOAs cannot sell an active service member’s house without holding a foreclosure proceeding in front of a judge. No military member can lose his or her home in any of the 64 Texas foreclosures, which occur monthly. Started in the 1920s as a way to separate wealthy landowners from the poorer peasants, HOAs dropped off in popularity in 1962. There were only 500 HOAs in 1962. The Homeowner Associations were popular again in the 1980s. Contractors built new houses; those wanting to own houses in the developments had to join the HOA. It meant homeowners had to follow rules. It was a requirement, if they wanted to live in the developments. The growth of the HOAs gave rise to associations that could make their own rules when it comes to Texas foreclosures. It also led to HOAs being able to increase the number of Texas foreclosures.

New rules protect homeowner’s rights in Texas foreclosures and legal process

 

Today, Texas HOAs are not able to evict homeowners and force Texas foreclosures if tenants are behind on HOA fees or the $200 a day fines a HOA can impose. These infractions can be for breaking minor HOA rules, but HOAs can charge fines. Those living in developments must abide by the rules. New rules state HOAs must hold a hearing first before they can take action against residents living in these developments.

New rules may not stop HOAs from making some Texas foreclosures. It does not mean Texans need to face eviction because of unpaid fees. Texans have a right to fight for their homes. The state of Texas does not need to see the number of Texas foreclosures grow, considering it tails behind Florida and Arizona in the number of foreclosures. The state does not need more empty houses.

Are you facing foreclosure? Many Texans may think in Texas foreclosures that they do not have options. This is a myth. Homeowners always have options when it comes to saving their homes. Save My Texas Home, an organization that offers free help, can help Texas families. Many families do not know the options if they have an ARM mortgage or any other type of loan agreement.

By taking to specialists at Save My Texas Home, couples can review their Texas foreclosure options. They have the opportunity to save their home before it is too late. You do not have to accept selling your home in a foreclosure auction, if you act quickly. You may be able to get a government-backed home modification loan and lower your monthly payments over a longer loan period.

Before you make any decisions, please give us a call. Help is only a click away on the Internet or a quick telephone call away and it does not have to be expensive. It is nice to know there are a number of free resources that are only a telephone call away. We can refer you to investors; they can buy your home quickly. You can pay off the loan owed to mortgage lenders. We can provide the counseling you need, too. We allow you to make the best decision of how you should handle a foreclosure. Our number is  512-271-5044. Why not give us a call today!