HOA boondoggle

By Kenneth Laursen, Henderson

Thursday, Oct. 9, 2014 | 2 a.m.

In a perfect world, an HOA is a good thing. Lawns are mowed, cars are not on blocks, houses are not painted purple. However, consider some tricky scam HOA regulations that have imbedded allowances for “sub-associations.” The scenario is dependent upon the homeowner not understanding the regulations and, also, his mailbox filled with junk mail. Here is how it works:

Master HOA creates sub-HOA B, “The Jones Retirement Co.,” and sub-HOA C, “The Smith Diversity Co.” Each has specific duties. Jones manages pool maintenance. Smith manages trash pick-up.

Homeowner receives and pays bill from Master HOA, believing entire HOA obligation is completed. He receives invoices from Jones and Smith in cleverly worded long letters in envelopes designed to be “junk mail,” which may or not be opened.

Future “junk mail”-appearing envelopes, with second, third, final notices for payment, are unopened and trashed. This creates unpaid sub-HOA debts, which then are sold to law firms/collection agencies. Bills sent from the collectors appear to be more “junk mail,” which are unopened and trashed.

The unsuspecting homeowner is sued by the various entities for hours, penalties, interest and fines. With thousands owed, foreclosure begins.

Been there, done that!