HomeLatest NewsFeatured HomebuildersHome Buyer ResourcesBinding ArbitrationResource LinksSubmit ComplaintsView ComplaintsTake Action 101!Report Mortgage FraudMortgage Fraud NewsForeclosure NewsConstruction DefectsHome DefectsPhoto GalleryFoundation ProblemsHomeowner Website LinksHOA Reform
Main Menu
Home
Latest News
Featured Homebuilders
Home Buyer Resources
Binding Arbitration
Resource Links
Submit Complaints
View Complaints
Take Action 101!
Report Mortgage Fraud
Mortgage Fraud News
Foreclosure News
Construction Defects
Home Defects
Photo Gallery
Foundation Problems
Homeowner Website Links
HOA Reform
Featured Topics
Builder Death Spiral
Report Mortgage Fraud
Foreclosure Special Report
Mold & New Home Guide
Special News Reports
Centex & Habitability
How Fast Can They Build Them?
TRCC Editorial
Texas TRCC Scandal
Texas Watch - Tell Lawmakers
TRCC Recommendations
Sandra Bullock
People's Lawyer
Prevent Nightmare Homes
Choice Homes
Smart Money
Weekly Update Message
HOBB Archives
About HOBB
Contact Us
Fair Use Notice
Legislative Work
Your House

 HOBB News Alerts
and Updates

Click Here to Subscribe

Support HOBB - Become a Sustaining Member
Who's Online
We have 2 guests online
ABC Special Report
Investigation: New Home Heartbreak
Trump - NAHB Homebuilders Shoddy Construction and Forced Arbitration
Beware of HOA Payment Plan Texas Industry Style
Sunday, 22 May 2011

When an expensive payment plan deal becomes a foreclosure
Senator West’s HOA Reform SB 142 contains a flawed “Priority of Payments” section that will dictate how homeowner HOA payments must be applied.  SB 142 has a “Payment Plan” section as well that will officially dictate that HOAs must offer a payment plan under state law, to homeowners who are delinquent on their dues. Senator West has added both requirements to Rep. Dutton’s HB 1228.  The problem is that the Priority of Payment as it is currently written has the (b) exception that would allow current abusive practices of applying all payments to attorney fees under a payment plan, so that business will continue as usual.

Beware of HOA Payment Plan
When an expensive payment plan deal becomes a foreclosure

Senator West’s SB 142 HOA Reform contains a flawed “Priority of Payments” section that will dictate how homeowner HOA payments must be applied.  SB 142 has a “Payment Plan” section as well that will officially dictate that HOAs must offer a payment plan under state law, to homeowners who are delinquent on their dues. Senator West has added both requirements to Rep. Dutton’s HB 1228.  The problem is that the Priority of Payment as it is currently written has the (b) exception that would allow current abusive practices of applying all payments to attorney fees under a payment plan, so that business will continue as usual.

See Dutton’s HB1228 as substituted by West:
http://www.capitol.state.tx.us/tlodocs/82R/billtext/doc/HB01228S.doc

Senator West has attached the following Exception to Sec. 209.0063 page 3.
 
(b) If, at the time the property owners' association receives a payment from a property owner,
the owner is in default under a payment plan entered into with the association:
(1)  the association
is not required to apply the payment in the order of priority specified by Subsection (a
); and
(2)  in applying the payment, a fine assessed by the association may not be given priority over
any other amount owed to the association.

 Current payment plan industry practices: 

1.    Payment plans have become a prerequisite to foreclosure.  See HOBB Report:
      1,425%    Markup - Big Corporate Business for HOA Non-Judicial Foreclosures

2.    An elite group of industry attorneys/debt collectors have captured the market of
      no- 
win homeowner’s payment plans as the option for HOA foreclosure on homesteads.

3.   The HOAs attorney business plan objectives of payment plans: 

a)  Is to derive a steady stream of income for themselves as the debt collector; while the debt continues to mount under the payment plan  

b)  When a payment is missed under the plan (anticipated), the HOA attorney posts notice for a “NON–Juridical” foreclosure again, adding more fees and offers another payment plan or face foreclosure.  Additionally, homeowners may be required to sign an Agreed Judgment 

c)  With 2 to as many as 5 times of payment plan extensions and notice postings, the attorney submits the Agreed Judgment for a default before the judge under a Judicial Foreclosure 

Foreclosed – THE END

 

 

 
< Prev   Next >
Search HOBB.org

Reckless Endangerment
BY: GRETCHEN MORGENSON
and JOSHUA ROSNER

Outsized Ambition, Greed and
Corruption Led to
Economic Armageddon


Amazon
Barnes & Noble

NPR Special Report
Part I Listen Now
Perry Home - No Warranty 
Part II Listen Now
Texas Favors Builders

Washington Post
The housing bubble, in four chapters
BusinessWeek Special Reports
Bonfire of the Builders
Homebuilders helped fuel the housing crisis
Housing: That Sinking Feeling

Consumer Affairs Builder Complaints

IS YOUR STATE NEXT?
As Goes Texas So Goes the Nation
Knowledge and Financial Responsibility are still Optional for Texas Home Builders

OUTSTANDING FOX4 REPORT
TRCC from Bad to Worse
Case of the Crooked House

TRCC AN ARRESTING EXPERIENCE
The Pat and Bob Egert Building & TRCC Experience 

Build it right the first time
An interview with Janet Ahmad

Bad Binding Arbitration Experience?
This e-mail address is being protected from spam bots, you need JavaScript enabled to view it
or call 1-210-402-6800

top of page

© 2021 HomeOwners for Better Building
Joomla! is Free Software released under the GNU/GPL License.