What happens after the bankruptcy discharge: An emerging (and disturbing) trend in foreclosure, bankruptcy, and HOA law
The prevalence of foreclosures in the real estate market has had several unexpected repercussions to distressed homeowners who have made the decision to walk away from their home. Banks appear to be unable, incapable, or unwilling to handle the volume of foreclosures, so a distressed homeowner may continue to own his or her home for months, and occasionally even years, after receiving a Notice of Trustee’s Sale (rather than the 90-days stated in the Notice).
Can they really shut off my water?
Homeowner and condominium associations are increasingly adopting policies for shutting off water or other utilities where an owner has fallen behind in his or her assessments, owes fines or penalties for violating the governing documents, or is supposedly refusing to follow rules. Although people who own in a homeowner association generally are obligated to pay assessments, associations commonly use these water shut-off policies in order to force members to pay assessments, fines, penalties or other charges that they may not owe. These owners often face an unfair choice: Pay what we tell you to pay or live without water.
My HOA got a $1,200.00 judgment against me. So why are they saying I owe $6,000?
If you live in a homeowners association and have ever fallen behind on your assessments, chances are good you received one or more letters threatening legal action. If you have been unlucky enough to be sued by your homeowners' association and lost, chances are very good that your homeowner association has added court costs and attorneys’ fees to the amount of the unpaid assessments. Arizona law and homeowners association’s governing documents generally permit a homeowners association, if successful in court, to include its costs and attorneys’ fees in addition to the unpaid assessments in any judgment it obtains against you.
Your Almost-Absolute Right to Inspect Records
Arizona law is clear on the subject of your HOA's records -- as a member of the HOA, you have the right to inspect and copy any and all association records. Meeting minutes, financial records, bank statements, vendor's contracts, bills, invoices, checks, voting records...just about anything!
Smile...You're Being Recorded!
Arizona law gives homeowners the right to record all open board meetings.
Persons attending may tape record or videoptape those portions of the meetings of the board and meetings of the members that are open. The board of directors of the association may adopt reasonable rules governing the taping of open portions of the meetings of the board and the membership, but such rules shall not preclude such tape recording or videotaping by those attending.
A common tactic employed by numerous boards is to require a homeowner to give advance notice of their desire to record a meeting at least 24 hours before the meeting. Another common ploy is to require anyone who records or videos a meeting to give a copy to the board or face stiff fines. In our opinion, these are not the "reasonable rules" that the statute has in mind. Do you know for sure you are going to attend the next board meeting? Do you know for certain that you want to record or video that meeting? Very often the need to record does not arise until at the board meeting.
Is Your HOA Suing You?
Is your HOA or condominium suing you?
Maybe you think -- or even know -- that you're current on your assessments. Or maybe you might be a little behind in your payments...but certainly not by that much! So why is your HOA suing you -- or threatening to sue you -- for so much more?
Arizona's Open Meeting Laws
It is really quite a simple and easy concept to understand: The board of directors generally must operate in open meetings. They cannot act in secret or transact business in closed meetings (except in very narrow circumstances).
The statute states: