Tag: collateral

Dual HOA punishments: no homestead protection & foreclosure

The unreasonable HOA take all foreclosure right is a cruel and unusual punishment. (Courts finally realizing the gross injustice of HOA foreclosures). It is linked to the denial of the homestead exemption which in effect, crushes without exception the dastardly homeowner for not paying up! 

The Arizona Legislature is considering SB 1470 that attempts to restore homestead protection and correct this shameful treatment of good people. The opposition offers no justification, and the “general interest” argument is without merit as it denies fundamental rights. It’s a simple one-liner to be deleted. The case for the exemption was well stated in 2007 by California’s L. A. Times columnist Donie Vanitzian, JD,

“It is the titleholder’s personal asset that functions as a kind of perverse collateral, requiring the owner to pay assessments to the association-entity or lose his asset. . . . On purchase of that home and without anything more, the titleholder’s asset became a personal risk and personal liability for the owner. Instantly, the titleholder’s asset also became collateral for the association-entity.”

(California Common Interest Developments — Homeowner’s Guide, Donie Vanitzian, p. xviii, xix, Thomson – West 2006).

The Arizona 9 page, plus addendums, residential purchase agreement of some 400 lines does not inform the buyer that his home is security for the survival of the HOA. It is a statutory lien created by the state and not a voluntary agreement. On the other hand he is informed that his home is security for the mortgage.

Please protect the sanctity of the home and restore the homestead exemption to HOA homes.  Pass SB 1470!

the role of homeowners is simply to provide corporate HOA revenues

On today’s This Week on ABC, the host described Ferguson’s policy, based on the DOJ’s report, as “taxing those in poverty for revenues rather than treating them as citizens.” I believe, as fellow activist Donie Vanitzian has repeatedly stated in Villa Appalling! [1], the purpose and function of homeowners in HOAs is to provide revenue for the HOA government [2] rather than treating them as citizens of the HOA.

I don’t think that the HOA Stakeholders, led by the self-anointed national lobbyist educational organization, would dare now argue that homeowners are indeed citizens of the corporate HOA business.  It would be an oxymoron.  I don’t think homeowners realized that their purchase solidified them as guarantors of the HOA’s survival in that their homes were pledged as collateral for their continued payment of assessments.  This pledge is implicitly contained in the CC&Rs, which they supposedly agreed to with full knowledge.

Notes:

  1. Villa Appalling!: Destroying the Myth of Affordable Community Living, Vanitzian and Glassman (Villa Appalling Publishing 2002).
  2. Numerous court cases have upheld a “pay until you die” doctrine found in state statutes and HOA CC&Rs. Homeowners are denied the legal protection of FDCPA, by simply filing a certified letter, of no payments until disputes are clarified.  Homeowners are not even allowed to place disputed amounts into an escrow account.  Numerous court cases have defended this special application of the law as a matter of the HOA’s survival.