Your Rights as a Homeowner Against Your HOA
Many areas of the country have something called a Homeowner Association (HOA). A Homeowner Association is designed to ensure the quality of a community is maintained. For example, if a homeowner does not shovel their snow if their grass is not cut, the Homeowner Association can give the issue a citation. What many people do not fully understand is that they have rights against the Home Owners Association.
There are usually frequent disputes that arise between the homeowner and the HOA. Homeowners often feel that the HOA abuses their power and issues citations for unfair reasons. Neighbors often report other neighbors to the HOA because they do not like each other. The HOA was created to maintain the community, not to deal with domestic disputes.
If you are currently frustrated with your HOA, there are rights you need to be made aware of.
HOA Board Members Can Be Removed
If you are frustrated with a particular member of the HOA Board, there are steps you can take to get this person removed. A petition must be started and signed by a certain percentage of the community before the removal process can begin. If you live in a community with fewer than 1,000 units, you will have to get at least 25% of the community to sign the petition. However, if you live in a community with more than 1,000 people, you will only need to get 10% or 1,000 members, whichever is less. After receiving enough signatures and the petition is submitted, the Board of Directions will hold a meeting within 30 days. All of the homeowners will be informed. At this meeting, at 20% of the homeowners must be present either in person or by absentee ballot to vote. The decision to remove the board member in question will be determined by majority vote. However, the HOA can content the vote if they choose to.
HOA Community Rules Can Be Amended
Take a look at the declaration that was created when your HOA was founded. Almost every declaration states that certain HOA powers may be amended. The community usually does have the power to amend the HOA powers. The trouble with attempting to amend a HOA Declaration is getting the immense community support. If the HOA decides to fight your recommended amendment, you will probably have to meet with an experienced attorney if you want a shot at getting anything changed.
HOAs Have Power Limitations
Understand that HOAs only have so much power. If you think they are abusing it, you may be able to make a case!
If you feel that you are a victim of a wrongful foreclosure due to your HOA, give us a call today: 817-310-0136
Foreclosures vs. Short Sales
What is Foreclosure?
Foreclosure is a legal process that takes place when a lender such as a bank, attempts to recover the balance of a loan from a borrower who is no longer making mortgage payments per their loan agreement. The lender may force the sale of the property used as collateral for the loan. Foreclosure is a lengthy procedure which can typically take up to 180 days to complete. After the filing of a formal complaint or lawsuit with the Court having jurisdiction, for failure to pay, various legal proceedings are put into motion, culminating with the sale of the home at auction to the highest bidder, forcing the former owner to vacate the residence immediately once a Certificate of Title has been issues by the Court Clerk to the new owner.
What is a Real Estate Short Sale?
A real estate short sale is an event whereby the mortgage lender agrees to accept a loss on the repayment of a mortgage loan. This occurs when the borrower is unable to make monthly mortgage payments and has to sell. Prices have dropped to the point where there is no longer equity in the property and the amount owed is more than the total value of the property. This is where short sales can get tricky and often present many variables. For instance, a realtor or home owner can list a short sale, but it the lender that makes the final decision on the amount they are willing to accept for the house. However, if the house has not gone into foreclosure, the lender cannot make the homeowners vacate until a short sale offer has been accepted by the lender and closing has transpired. Homeowners in financial distress often opt for short sales to avoid foreclosure which is detrimental to their credit.
Foreclosure vs. Short Sale
Foreclosure:
- Appears on your credit reports and can hurt your credit rating; having a major impact on future credit worthiness and interest rates.
- Can appear on your credit records for up to 7 years, and can also affect your ability to secure certain employment.
- Could present a road block for security clearances.
- Creates a lengthy waiting period before you can purchase again.
- On future 1003 applications, a YES to the question on foreclosure may impact your ability to borrow.
- Forces you to vacate your home immediately or in a worst case scenario, being move out by local law enforcement authorities; creating an embarrassing and emotional scenario for you and your family.
Real Estate Short Sales
- You have control over the price of your home since you still have ownership, because the lender has not yet taken it. Although the lender has the final decision, prices in a short sale are higher than a foreclosure.
- A short sale allows you to stay in your home longer, and does not have an adverse effect on your credit report in the same manner as a foreclosure.
- Choosing this process will not have a negative impact on your current or future employment.
- There will be no effect on security clearance.
- There is no question on the 1003 application with regard to short sales.
- Only late payments will impact the credit score. Once the sale is done, the mortgage may be shown as “paid as agreed”, “paid as negotiated” or “settled”. This can lower the credit score as little as 50 points. A short sale credit score impact; however is not long term.
From a practical standpoint, a short sale in lieu of foreclosure is by far the very best option. If you are still the homeowner, you can have input on the price of the home as well as the timing of the sell. Plus, it is easier on your credit reports, but most of all it is much more pleasant than being forced or evicted from your home by the court.
Why Nancy Carroll PC:
There are still many factors when it comes to short sales. Banks are not REQUIRED to grant you a short sale. You need experience on your side. Nancy Carroll PC has successfully negotiated over 200 short sale transactions. Texas short sale attorney and Texas short sale specialist.
Get some of your questions answered with a free phone consultation: 817-310-0136
When to Start Estate Planning – The Essentials You Need to Know
In this blog we will discuss the essentials of estate planning and when you should start estate planning.
Estate planning is critical to everyday living, and should be at the top of everyone’s to-do list, no matter their age or marital status. If you have not yet planned your estate, we urge you to do so right away. People need to know and understand they should prepare for the unexpected. Remember that ole saying, “tomorrow is not promised?” Well it’s true. Think about it… What would happen for instance to your children, your home, and all you have worked for in the event of your sudden death or disability if you have no estate planning in place? A single word can accurately describe what would surely follow: CATASTROPHE! Therefore, remember to plan ahead.
BASIC ESTATE PLANNING FOR ALL PERSONS INCLUDES THE FOLLOWING MUST HAVES!
-A Will to establish what would happen to your assets, and also names the guardian for your children. Dying without a will is called dying “intestate”, and gives you no voice. It can be costly to your heirs and can bring with it several other issues such as family dissension and probate court intervention. Even if you have a trust, you still need to take care of any holdings outside of that trust when you die.
-A Durable Financial Power of Attorney to handle your financial affairs in case of incapacity.
-A Medical Power of Attorney to make medical decisions for you in the event you are unable to do so.
-A Living Will to specify the measures that can be taken to sustain life.
ADDITIONAL AREAS OF ESTATE PLANNING TO CONSIDER:
-A Living Trust. If you hold property in a living trust, your survivors won’t have to go through Probate Court, which can be a very lengthy, stressful, and expensive process.
-Planning For The inheritance of Your Children. It is always wise to name an adult to manage any money and property your minor children may inherit from you.
-File Beneficiary Forms. Appointing a beneficiary for all bank and retirement accounts make those accounts automatically payable at death to your beneficiary, thus bypassing the probate process.
-Secure life Insurance. If you have children, own a house or have substantial debt or estate tax, life insurance may be a great choice. For example, in addition to helping to support dependants, life insurance can help provide immediate cash at death. Insurance proceeds are also a good source for paying your debts, funeral expenses and income or estate taxes.
-Understand Estate Taxes. Most estates will not owe federal estate taxes, because this tax is only imposed on persons whose taxable estate is worth more than 5 million. For deaths occurring in the year 2012, the exempt amount is 5.12 million. Married couples can transfer up to two times the exempt amount tax-free. Also, property left to a spouse (must be U.S. citizen) or tax exempt charity is exempt from the tax.
-Cover Funeral Expenses. An account can be established at your bank where funds can be deposited to pay for funeral expenses.
-Business Protection. If you are a sole proprietor, setting up a successor plan is crucial. If you are in a business partnership, you should create a buyout agreement.
-Secure And Organize All Important Documents:
- Will
- Trust
- Insurance Policies
- Real Estate Deeds
- Stocks, Bonds, Annuities Certificates
- Bank Account Information, Mutual funds, Safe Deposit Boxes
- Retirement Plan Information such as 401(K) accounts and IRAs
- Debt Information, Credit Cards, Mortgages and Loans, Utilities, and Unpaid Taxes
- Final Arrangements, including Funeral Pay-Out Plans, and any other instructions you have given
About Nancy Carroll, PC:
Our practice handles a variety of services regarding trusts and estates including: estate planning, estate and trust administration, and representation of beneficiaries.
Nancy Carroll, P.C. also handles: wills, basic marital trusts and family trusts, retirement plan and life insurance beneficiary designations, and financial and health care powers of attorney.
Call us today: 817-310-0136
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