Better Pay Your HOA Dues, or Else!

I was shocked to learn a Home Owners Association in Texas has the right to foreclose on a home if the dues on that home are not paid.  The HOA even has the right to foreclose before the mortgage company.

The legal experts tell me the threat of Foreclosure is the best way to get people to pay their bills and actual foreclosure only takes place about 1% of the time.

Take the case of Randy Mahone, facing a financial life crisis he failed to pay 250 dollars in HOA dues.  Eden Creek HOA in Arlington then hit him up for an additional $1500 in late and legal fees.  When he failed to pay that, the HOA filed foreclosure papers.  He saved his home from foreclosure on the day it was set to go up on the auction block.  At first it seems extreme, even bordering on ridiculous.

But what also is ridiculous is that someone just stops paying his bills, especially a small one.  Randy now regrets doing that.  He even acknowledges he should have done a better job at trying to work things out earlier.  After all his HOA dues are only $50 dollars a quarter.  Not worth going through the hassle of nearly losing your home.

People need to be aware of the contracts they sign and the consequences of ignoring bills and notices to pay those bills.

Even so, I do think it is just a bit over the top for an HOA to foreclose on a home over an unpaid $250 bill.