Homeowners association threatening foreclosures
Lincoln Crossing residents have recently begun receiving notices of intent to foreclose – but from the homeowners association, not the banks. “Basically, I was appalled that they would do this in today’s crisis,” said Pam Spanier, one of those residents. Spanier received a letter dated April 27 from the collection agency for the Lincoln Crossing Community Association stating that she needs to pay the sum of $2,100.52 by June 2, or foreclosure proceedings will begin. The mandatory dues to the association are $115 per month, Spanier said, and she has not been able to pay them for the past five months, and she lost her unemployment benefits last month. Spanier, a mother of three, said she lost her job in December, 2007, and has not been able to find work in the meantime. She recently got a loan modification for her house, but when she talked to the community association, she was told she will have to pay $250 per month on a payment plan to make up for the months she has not paid her dues as well as various fees. “If I can’t pay $115, how can I pay double?” Spanier asked. “I don’t have the money.” According to Spanier, she only owes $600 in dues, but the additional fees make up the difference between that $600 and the balance of her account, which is $2,100. “I’m disgusted that this group of people can sit there in this economy and try to foreclose on a family of four for basically $600,” Spanier said. David McCray, president of the Lincoln Crossing Community Association, said he recognizes the hard times, but stressed that the association must fulfill its budgetary obligations, and giving homeowners a “free ride” isn’t an option. “We do expect people to pay their association fees, which are $115 a month,” McCray said. “We are one of the few associations that set up payment plans.” According to McCray, about 60 homeowners in Lincoln Crossing are currently paying back their debts via payment plans. Homeowners associations became prevalent after the passing of Prop. 13 in 1978, which capped real estate tax increases, according to Curt Sproul, a Roseville-based real estate lawyer practicing since 1973. In order to fund common-use areas such as some parks, golf courses and other facilities, homeowners associations are allowed to collect dues under law, regardless of whether the homeowners use those facilities, Sproul said. Just like taxes, homeowners are obligated to pay those dues, and the associations have a legal right to enforce that collection, according to Sproul. That includes foreclosure proceedings. “Most of the time, it’s just a good, effective threat that, under law, they have the right to foreclose,” Sproul said. There are many safeguards under the law to protect homeowners from actually being foreclosed on by their associations, Sproul said, and those include meetings with the association board, setting up of payment plans and the fact that nothing can be done until at least 90 days after the letter of notice is served. “We’ve never foreclosed on anybody,” McCray said. “That’s not to say we won’t, but we haven’t.” At the heart of the matter, McCray said, is making sure that the association will be able to recoup the unpaid fees if and when the bank forecloses on the homeowners. “If we have the liens out there, when the house sells, that is part of the escrow, and we get it back,” McCray said. The fees pay for a variety of services in the association, according to McCray. Those services include internet, landscaping, janitorial staff, security patrols and the operation of Club Lincoln, the fitness facility open to residents of Lincoln Crossing. McCray said Spanier is not alone, as about 300 homeowners are in various stages of getting behind on their payments. “About 10 percent (of the homeowners) are either skipping payments or have been foreclosed on by the banks,” McCray said, adding that there are approximately 3,000 homeowners in Lincoln Crossing. “The bottom line…we’re not a charity here,” McCray said. “We’re a business just like any other out there. We’ll work with them the best we can.” Mary MacDonald is another homeowner who received a notice of intent to foreclose April 27. “I’m 80 years old, and this gets me very upset,” MacDonald said. “I’m getting ready to declare bankruptcy, and they can go whistle Dixie for their money.” MacDonald said she had hoped the association would be more willing to work with homeowners. McCray said the association has been very “tight” with its funds, and plans to remain that way. “If folks just aren’t going to pay, we have to go through the process,” McCray said. “The whole association can’t die because you can’t pay.” Brandon Darnell can be reached by e-mail at brandond@goldcountrymedia.com.
|
Change Location:
|
This just goes to show that the Lincoln Crossing Homeowners Association cares nothing about the residents and only their bottom dollar. $115 dollars a month to pay for a club house that offers nothing, maybe a couple of pieces of gym equipment, and a 3 ft baby pool. Don't forget the patrol that tickets your car every fifteen minutes if left on the curb. What a joke they are! McCray's payment plan is the same plan the mortgage company's setup to help people when they got behind on their mortgage. Make the payment twice as much! Looking forward to the day when McCray loses his house and job. Remember, what goes around comes around you idiot.
This is really just wrong. Putting someone out on the street potentially for delinquent homeowners association payment? That is ridiculous. Take a clue from the city or the county where if you dont pay your utilities like trash and water or your taxes, they put a lien on your home. Sounds like the association needs a meeting to amend their policies so they wont be so out of touch and downright mean spirited.
First off, I feel sorry for anyone that has lost their job and can't make payments on their house . . . but at the same time, everyone that purchases a house that has a homeowners association knows the repercussions of not paying the dues. It's spelled out and very clear in the contract. The problem with Gus's idea is that a lean is not paid off until the house is sold . . . and an HOA needs a cash flow. I do agree with Gus though rather than complain about it, run for the board of the HOA and get things changed. And as for VV, give the guy McCray a break. He's just doing his job which is to enforce what the contract says.
WOW, IT'S THINGS LIKE THIS THAT MAKE ME HAPPY THAT I'M NO LONGER LIVING IN LINCOLN, THIS IS WHAT HAPPENS WHEN A SMALL TOWN BECOMES A CITY. DOES ANYONE EVEN KNOW WHO LIVES NEXT DOOR TO THEM? DO YOU PEOPLE NOT WAVE AS YOU DRIVE BY ANYMORE? DO YOU EVER STOP AND SAY HELLO TO PEOPLE AS YOU PASS BY? I DID'NT THINK SO. CONGRATS FOLKS OF LINCOLN YOU ARE NOW PART OF SACRAMENTO......WELCOME. I ALWAYS WANTED TO MOVE BACK TO MY HOME TOWN OF LINCOLN TO BE AROUND NICE PEOPLE AGAIN. I GUESS I'LL STAY HERE AND SOMEDAY TELL MY GRANDKIDS ABOUT THE WAY IT USED TO BE BEFORE THE H.O.A.'S. TOOK OVER . WHAT WILL THE HEARTLESS PEOPLE WHO RUN THEM SAY WHEN THEY GO BEFORE GOD AND HE SAYS "GO TO HELL'S H.O.A." ????? ONE FINGER SALUTE TO YOU MR. SPROUL
Disgusting. These HOAs should have every power stripped from them and be made to cut the damn grass (kind of what they told us when we bought our house....OH THEY JUST CUT THE GRASS, THATS ALL)
We have morons walking around looking for violations, fines being levied because a board member doesn't like someone, money being stolen by board members, kick backs by vendors to board members...it goes on and on!
And guess what folks....THE HOA LAWYER IS LAUGHING ALL THE WAY TO THE BANK!!!! Foreclosures actualy COST THE HOA MONEY. The only benefactor is the HOA LAWYER!
The folks at this HOA should kick these pigs out of office, audit the books and put some of them in jail! Don't forget to FIRE the lawyer and prop manager. Get a bookkeeper to do the books for 100th the price!
Give back 95% of the money that is spent on the sleeze to the Homeowners!
Why can't they just dissolve the whole thing? There are many beautiful neighborhoods in Lincoln that don't have an HOA. Close the Club, lose the security (that's what P.D. and Neighborhood Watch are for), nix the internet, and let the resiidents and City take care of the landscaping and parks. I just don't really get the point of HOA's. I have an HOA because I couldn't find a house that suited our needs that didn't have one... and I still can't quite figure out what they do for us that we couldn't do for ourselves. It used to be that if a neighbor's yard looked like crap or there was some issue going on, the rest of the neighbors would just complain directly to the neighbor. Now everyone anonymously runs to the HOA so they can make a new rule about it. Lame.
It is so ridiculous that the HOA can kick out a family of four to go live on the streets without willing to work with them on a payment plan. The HOA association already gets dues from over 3,000 homes… I think they are sitting pretty where they are now and don’t see why they wouldn’t set up a payment plan. Honestly what do we pay HOA for anyways? There is no neighborhood watch, they don’t enforce lawn maintenance, ticket your car for it being parked for more than an hour on the street and give you a small puddle of a pool for you to “wade” in. Personally lets due away with the HOA. They can kiss my A**. As for their representative, McCray… I hope you can sleep well at night knowing how much stress you have put on this family. Knowing you put an unemployed mother and family of four out of their home to live on the streets. Thanks, shmuck!
The memebers of the Lincoln Crossing Homeowners Association should all be lined up and shot....assuming that that might be too extreme, they should at least be forced to live on the streets as homeless.
Lincoln Crossing HOA and Mr. McCray seem to bask in the light of POWER. How the heck were these people nominated? Where the hell is any compassion or heart for their community and the families who live here? They should be ashamed of themselves and the ruthless comments they made about their stance on payments of homeowners dues.
It is more important to pay mall cops to place tickets on cars if they are parked after midnight on the streets then to reduce these ridiculous HOA fees which would help defray costs for all of the Lincoln Crossing residents especially those in trouble.
What a sad and disturbing situation this is. This is not the Lincoln I know and love. It's big city attitudes and conceits transplanted to rural small town America. This is egos run amuck from the top to bottom! From the City who wanted to grow up and be Rockiln or Roseville to the HOA's ridiculous rules and legal powers to the buyers who thought that a house they couldn't afford would be a wise investment. All of those people are sucking the life, the kindness, the small town caring and support out of Lincoln. I have never and will never live in a HOA neighborhood. They are run by meglomaniacs who lord their power over those dumb enough to sign on the dotted line! As far as I and many others are concerned, "Lincoln" ends at Ferrari Ranch and everything south of that is something else. It's Rocklin North not Lincoln! There are terrific people who live there to be sure! I know a lot of really nice peoplethere in those hideous new subdivisions but the *overall* impression given by the newcomers is they're different, better even than the local yokels who enjoyed their town the way it was. I hope the Lincoln Crossing HOA Board members see that family every time they close their eyes. Go ahead, go to sleep with the children you put on the street's images floating through your dreams. A contract is a contract is a simple minded response to a family's hardship and a sign of how far from a caring "community" Lincoln has fallen. I hope the heart of Lincoln, the small town feel and the community spirit hasn't been harmed beyond recovery. I don't think it has...yet. But it sure has had a lot of the stuffing kicked out of it!!
To make matters worse, every single member of the board is appointed. Not a single one has been voted in by the homeowners. The homeowners have not been able to pull enough votes together to actually vote in the people they want. Who's to blame? A lame board? Or a lame group of homeowners? I think both.
Maybe next time you get your voter packet you will think about sending it in and who you are selecting!
David McCray is a double talker. All he does is say one thing and then a second later says the complete opposite.
I do have to say, other than a terrible HOA board, I absolutely love living in LC. I am glad you CANNOT park on the street. That the common areas are kept clean and tidy (Our city obviously can't handle it). That you have to keep YOUR yard clean.
To make matters worse, every single member of the board is appointed. Not a single one has been voted in by the homeowners. The homeowners have not been able to pull enough votes together to actually vote in the people they want. Who's to blame? A lame board? Or a lame group of homeowners? I think both.
Maybe next time you get your voter packet you will think about sending it in and who you are selecting!
David McCray is a double talker. All he does is say one thing and then a second later says the complete opposite.
I do have to say, other than a terrible HOA board, I absolutely love living in LC. I am glad you CANNOT park on the street. That the common areas are kept clean and tidy (Our city obviously can't handle it). That you have to keep YOUR yard clean.
Mr. McCray cares for and volunteers his time for the greater good of the Lincoln Crossing more than any other person. He is truly an asset to the community. The Association HAS NOT foreclosed on any home. The majority of people who are delinquent on their dues are just walking away from their homes and letting the banks foreclose. The Association places liens properties in these cases, due to the negative equity in the properties, in most cases recovers NOTHING! Do you honestly expect the dues-paying members to cover the expenses for those who aren't paying?!? The Association has a HUGE amount of delinquencies, the majority of which will never be paid back.
Think of it in a different context...would you be willing to pay for your neighbor's utility bill because he or she is unable to? I don't think so. So, enough of the personal attacks! If you don't like what's going on in your community, then speak up at the Board meetings. Better yet, I invite you to run in the next election. Every year, my vote will go to someone who shows true comittment, honor, and spirit, like Mr. McCray.
Thank you brownhouse. Your comments tell me you are a current board member, david mccray himself or related to him.
Most of the homeowners know the truth. Personal agendas, lack of fixing the problems, constant double talk and more.
I'm reading a lot of angry comments about the Homeowners Association and not a single suggestion of how the board should handle homeowners who just refuse to pay. How would YOU handle the situation?
In response to the comment posted by "Brown nose" oops....I mean "Brown house".
Do you really think that people who are out of work and struggling to keep afloat really want to default on any of their bills including HOA dues? I don't know if you have seen the news lately but we are in deep do-do with the state of the economy and job loss. Just because you may be employed and probably have never expereinced a hardship in your entire life, does not give you the arrogance or clout that you seem to think you have.
I feel sorry for you and Mr. McCray....heartless and uncaring about anyone who lives in Lincoln Crossing. Perhaps instead of attacking the struggling homeowners who are already dealing with huge issues, Lincoln HOA could band together to have fund raisers as a community of caring residents. Your support of McCray really does say alot about you.
A FUNDRAISER FOR THE COMMUNITY COULD BE AN IDEA TO CHANGE THE DIRECTION OF THE LINCOLN CROSSING HOA CROSSING.
THE ASSOCIATION BOARD COULD ACTUALLY REDEEM THEMSELVES AS HEREOS INSTEAD OF VILLIANS THEY ARE BY HELPING OUT THE HOMEOWNERS IN TROUBLE. THE PUBLICITY WOULD BE POSITIVE AND GOOD FOR LINCOLN CROSSING. WHO KNOWS, THEY MAY EVEN START A TREND.
ONE SUGGESTION WOULD BE TO OPEN THE POOL TO LINCOLN FOR A DAY AND CHARGE ADMISSIONS OR PERHAPS HAVE SOME CAR WASHES OR ANY NUMBER OF FUNDRAISERS OR EVENTS TO HELP OUT OUR FELLOW RESIDENTS. WHAT A GREAT WAY TO SHOW COMMUNITY SUPPORT IN THESE TIMES OF TROUBLE.
Brody123 . . . whenever I see someone result to name calling, I always think they must be losing the argument.
It seems to me you want everyone else to do something but I don't see you stepping up to the plate and showing us how much you care and that you're not heartless. Why don't you start a non-profit that collects money in LC to help people with that are behind on their HOA dues. Why don't you organize a BBQ and collect donations and give them right to the people that are behind on the payments. Quit expecting the HOA to make the donation and DO IT YOURSELF!! Put your money where your mouth is
Jnautique....please excuse me but you nothing about me.
I have in fact dedicated my life to help the communities and the people of of those communities. But, alas Lincoln Crossing and perhaps Lincoln itself is a losing battle caught up in encumbering money any way possible.
Additionally, I have made suggestions about helping others less fortunate in our community and would be happy to help should Lincoln HOA
start the event.
By the sounds of your comments, I can only surmise that you are quite obviously one of the self-elected memebers of the Lincoln Crossing HOA.
I think we can all empathize with those affected by layoffs, business closures, etc. But we can't keep giving more and more of our own hard-earned money in the form of increased taxes, fees, assessments, government bailouts, ad nauseam, to help everyone. You go ahead if you want, but count me out. I don't have any more to give.
Maybe it's time to move...sounds like they are living a life they cannot afford now. It's sad but is "reality".
I agree with the last post. If someone hasnt had a job for the last 18 mnths and has been living off the state why would you be holding onto a house you cant afford and Im sure the house isnt worth what she owes on it. Bottom line the people that bought in LC new they needed to pay that fee to get all the extras, she chose to buy there and now cant afford it. I have alot of friends that live in LC and they hate to pay that right now but they signed a contract and its not right that everyone else has to pay. They HOA should just take the $600 she owes and call it even. I hope she can find a job soon I know its hard and I wish her the best.
Brody, I'm glad to hear you are such a patron saint. You say I know nothing about you, but why is it that anyone that disagrees with you is a member of the HOA board? I still haven't seen you propose a solution. Do you want the board to decide who has the most need to get help. . . then those with more money foot the bill. Who cares about personal responsibility and that signing your name to a contract should mean something?
This is the problem with big government and big bailouts. Why should friends, family and neighbors help out when we know the government is going to bail everyone out? I hope the lady in the article can get a job soon . . . or maybe one of the kids can get a job and help out. Either way, I don't want to think about an HOA or any business ever having to determine who is the neediest and not taking from that group. The job of the HOA is to do what they signed on to do when people bought into the community. Their job is to collect the money and pay the bills. But asking them to figure out if someone should qualify for financial assistance and then employ that type of program seems like you are asking way too much.
I mentioned a solution in the second post. Its called a lien. Foreclosure is an option for whoever holds the mortgage, not a HOA. Thats the point. Whether you like HOAs or not, they shouldnt be able to foreclose for missed payments/dues. Do I expect the other homeowners to pick up the slack? in a word YES. Its your neighbor for hecks sake. Help them, If they got laid off forgive these payments. If the HOA has to tighten the belt then so be it. If the house is upside down and sold short and nothing is left for the HOA lien. TOO BAD. Everybody is being effected, The homeowner who just got chewed up and spit out of their home is the real victim not the HOA. Remember we are in this mess because of greed at the top. They wanted the sheep to all have homes so they could make fortunes on the boom. Now that its bust they dont give a darn about the little guy. We need to help each other and the HOA should have that a bit higher on the list of priorities IMO.
Hey Gus, I think the problem for the HOA with the lien is that their is no cash flow and no incentive to ever pay back what is owed. In effect, it is an interest free loan for someone until they sell their home.
I don't understand why you say an HOA shouldn't be allowed to foreclose? I think as long as the homeowner agrees to by-laws when they purchase the home, it seems like a reasonable way to ensure that everyone is paying their fair share. It's not like someone pulled a fast one on this family. They should have known exactly what they were getting into when they bought the home and if they didn't then they should have done a better job of reviewing the documents before they signed.
Finally, lets be fair. Greed went all the way from the rich to the poor in this real estate debacle. Did the companies want to make a lot of money? Yes, that's what companies doe? Did people take chances on property they couldn't afford? Yes, people like nice houses. Nothing wrong with either one of those things as far as I know. On the other hand though, people and companies better be prepared for the risk and the consequences if things do go bad. And for both of them to sit here are cry foul now that things have gone bad just seems wrong to me.
It isnt just people who had no down, zero interest loans that are losing their homes. Layoffs and no prospects for finding a job is causing people who dont fit into the "property they couldnt afford" catagory to be foreclosed upon. That is happening allot now. Im talking about the government who FORCED Fannie Mae and Freddie Mac to make loans that they shouldnt have, for reasons of greed and basically a setup for the rich to get richer have the root responsibility as they make the rules. Specifically Chris Dodd and Barney Frank did exactly that. Lets not even get into the corrupt tangled web of lies they now spew in denying their involvement. It all comes back to that. People need to be helped. Bush tried to regulate Fannie and Freddie and got laughed at for it. We arent6 laughing now are we?
Regarding why HOAs shouldnt be able to foreclose, they dont hold the paper!!! By your logic, credit card companies, auto repair shops, libraries, and endless other entities would be allowed to foreclose also.
It is estimated that Obama's plan could benefit 8 to 9 million homeowners from the new modification procedures. So how do you know you qualify for the Mortgage Modification? Check the website http://obamamortgage2009.blogspot.com/
to see if you qualify. I was also in trouble and I am glad I did check it before I talk to my mortgage company and it helped - John Mayer, California
Gus . . . we agree that the government guaranteeing all those high risk loans drove companies to make loans that should have never been made. Did these companies want to make money from these loans? Yes. Do you have a problem with that?
An HOA is quite a bit different from a credit card company IMHO. This is an association that is voluntarily joined when someone purchase a house in a neighborhood. When you live in the neighborhood, you benefit from the things that the HOA does regardless of if you pay dues. Credit card companies, auto repair shops, etc. can all chose to stop providing you service if you don't pay. An HOA can't do that.
Do you agree that a lien is effectively an interest free loan for someone who doesn't pay a lien?
It is great to see alot of folks in support of this gal... It is obvious she could use some help. How about you set up an account for her and help her out? C'mon, she is a Lincoln Resident, she is your neighbor too! If everybody in support of her threw in a hundred bucks or so, we wouldn't be having this discussion. When you open that account, open 299 more for the other people too... we owe it to them to cover their bills before they go into foreclosure. How are they doing on their utilities and car payments? We need to be sure that is covered too, Or is it that you think Lincoln Crossing folks should be FORCED to make that donation?? The services that are provided by the HOA comes out of the pockets of normal people, to pay for services provided. We expect to get what WE pay for. I personally did not sign up with the HOA under an understanding that if there were problems with hundreds of owners, they would increase my HOA fees, and transfer the money I pay to those who don't. That is how are country is being run.... doesn't seem to be working. I heard one idea, Mr Mccray could be a hero for raising funds and giving it to those who need it.... laughable. Hero for who???? Our association is running in the red because of this! I for one would want him fired for giving away our money!!!! We need solvency. The association is a group of people who pool their money together to get services for the community. Completely non-profit governed by volunteers. This isn't some big for profit corporation. Our home will go to our children, hopefully with everything we paid for... club house, pool, etc, and hopefully not with outragous dues as a result of mismanagement. Before you call me cold hearted, just know, I donate alot of time to charities, and money as well. I have been known to help out perfect strangers, and neighbors. I mow a widows yard every week for free. All of that is MY choice, please don't take it away.
HAS ANYONE CONSIDERED THE OLDER POPULATION IN LINCOLN CROSSING SUCH AS THE 80 YEAR OLD MENTIONED IN THE ARTICLE WHO IS BEING FORECLOSED ON BY THE HOA?
DO WE STAND BY AND ALLOW THE HOA TO THROW OUR ELDERLY INTO THE STREETS BECAUSE OF AN ECONOMIC DOWNTURN? IT IS NO WONDER OTHER COUNTRIES ARE SO MUCH MORE ADVANCED THEN WE ARE SOCIALLY.
SHAME ON LINCOLN HOA AS IT IS A SAD STATE OF AFFAIRS THAT THE HOA WOULD EVEN THREATEN THE WEAK AND ELDERLY WITH FORECLOSURE.....LET'S JUST PUSH THEM INTO THE GROUND FASTER!
My wife and I are selling out of this pathetic HOA. We will NEVER buy into another one. Mark my words, in 10 years you won't be able to give away a home located in a HOA. They are a rip off and the HOA lawyers and Property Manegers are laughing all the way to the bank!
jnantique - No of course I dont have a problem with companies making money. Im conservative. Im not buying your argument. The city still provides services to those that dont pay their garbage bill for instance, This home I own here in Lincoiln had a very messy title when I bought it 15 years ago and had leins from the city (garbage) county (taxes) and the State for a workmans comp judgement. None of those entities foreclosed. I dont think that just because the HOA continues to do the things they are there for, that they can foreclose on someone in dire circumstances especially since in this scenario, the bank has yet to foreclose. that means they are barely making it and they had to cut something out and thats the HOA. No the HOA should not be able to get their dues by foreclosure AT ALL>
I have little sympathy here. Out of work for almost a year and half???? And three kids at home all of legal working age? Come on, get a job, pull together as a family and get yourself out of this mess instead of whining to all of Placer County that the big bad HOA wants their money! You signed the papers so deal with it!
these HOAs are an absolute disgrace. The lawyers are the only ones making any money, it will COST money for the HOA to foreclose.
This does not protect anyones home value, it only brings it down...who wants to live in this disgusting place?
BimBim.....I am sure that this family does not want to lose their home. Whos knows what the situation is with work. The job market is in bad shape as we all know. I think that she has every right to whine about the Lincoln Crossing HOA and she does not appear to be alone.
Again...what about the elderly being pushed out into the streets by foreclosure notices from the HOA?