Now that hard times have come upon us, the weakness and high risk of living in an HOA has become readily apparent, and too late for all those living in HOAs. The coerced acceptance under false pretenses, and the all too eagerness for people to believe, hid the reality that HOAs are like privately held small businesses and partnerships that expose the owners to high financial risks not of their own doing.
The pro-HOA supporters’ reason for the need for foreclosure rights can be found in the defective HOA legal scheme that is similar to a partnership. In partnerships there are a limited number of financial supporters, the owners, who are jointly and severally responsible for all the HOA debts — those with the money pay for those without the money. A legality. And like a privately held small business, the financial base is relatively small and limited to the homeowners who have very little practical means to escape their obligations by leaving the HOA. (Call for HOA action: “Occupy Wall Street” vs. Occupy the Legislature).
Like those caught in privately held businesses and partnership “gone south,” there is very little that can be done for homeowner-investors in HOAs. HOA foreclosure is unjust and lacks any evidence to salvage an HOA. Those very same laws that gave the image of safe investments and a happy community are at the heart of the problem. You know, like the banks giving away all those almost free mortgages.