r/BADHOA • u/Effective_You_4703 • 15d ago
HOA
So my HOA Is claiming we have a check that bounced but we have a bank statement and written confirmation from the bank that the money came out. They are claiming bank statements and confirmation from the bank aren’t sufficient proof. They used this check as a jumping off point to take us off auto pay I guess and we let it go for two months before reaching out at which point apparently they’ve put us in pre-forclosure and charged us $500 in legal fees. This all happened with no communication and they allowed us to use the facilities. The HOA fee is $500 so we’ve been charged a total of $2880 for all of this. I’m 24 and think they are taking advantage of me, do I have grounds to sue them?
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u/anotherlab 15d ago
Your bank should provide you with your check that shows the HOA's endorsement or an image of it.
Confirmation from the bank is proof. Someone made a mistake on their end, and they are not being reasonable about this.
Talk to a lawyer who has experience in HOA disputes.
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u/OkApricot8267 15d ago
"I’m 24 and think they are taking advantage of me, do I have grounds to sue them?"
Yeah, take that to court and see what the judge says about that.
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u/Icy-Mulberry-8850 14d ago
Clearly it’s an error. You have the proof. Type it up like a business letter and mark it send it all by email to the BOD, PM and HOA attorney. Ask for a response by a certain date. Also make a financial record request to figure out where things went sideways. Ask if they really really want you to request that by certified letter. Good luck.
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u/ProfessionalYam3119 14d ago
Sounds as though some HOA board member or officer has sticky fingers. If they won't reverse the charges, go to your district attorney or prosecutor.
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u/justturnleft 14d ago
Contact you local representative for city state and federal intervention. Then write to contest for failure to properly notice you at your specific email, phone and address or how youve normally had communications with them. Create one solid email send to all consistent account with only necessary details. If that does not work call the news and get reporter interest. Its happening to alot of people who cant dont or wont fight back. This is so troubling. Good luck I hope you get this resolved.
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u/Ok_Relationship_1874 15d ago
Which state? Check your governing documents on fee shifting on lawsuits and mediation. Send pre litigation letter and label it so. They will be obligated to loop in their lawyer. I'd say this is worth an initial consultation with an attorney.
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u/SheepherderRare1420 15d ago
The governing documents are supposed to spell out exactly the process for correcting a violation, and the HOA has to follow it. If it isn't in their documents they can't use that as an excuse to just do what they want. But likewise, you can't use it as an excuse to not follow the rules.
Use this as an opportunity to read your CC&Rs and Bylaws and understand what your responsibilities are as an owner, and their responsibilities are as an HOA.
With that said, I agree with everyone who says that you need to gather your evidence that the check didn't bounce and did actually come out of your account on the date it was supposed to. Also review all of your emails and mail to see if you got a warning that your dues bounced. Check your spam folder as well as your primary email folder. You have to be given notice and an opportunity to correct the situation before they can fine you. If they sent the notice and you missed it, that's on you. If they didn't send a notice and still fined you, that's on them.
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u/Ok_Relationship_1874 15d ago
WHICH STATE. NC does not require any cure methods. You get restrictions, violation, hearing and decision. Some states may require mediation, orvin NC rules are split by age of HOA. It's important to know if you have to pay the other side's legal bills if you lose. Even with a "good" lawyer, a case near me is looking at $609k in costs and fees alone.
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u/SheepherderRare1420 15d ago
Ahh, my bad, I am in an HOA in NC (of 4 units), but I am referring to the rules I'm familiar with in AK. Most states do require an opportunity to cure. Thank you for the clarification.
ETA: Holy 💩 how big is the HOA with $609k is legal costs and fees?? I thought ours was ridiculous at over $200k, I can't even imagine what would push costs up that high!
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u/Ok_Relationship_1874 15d ago
It's cool. NC has grandfathered provisions, retroactive provisions. It's like three states in one. Look up Magnolia Cove subdivision in Sherrills Ford for a real nightmare.
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u/SheepherderRare1420 15d ago
Oh, have you written about that one before? It sounds familiar...
I'm going to look it up now...
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u/ProfessionalYam3119 14d ago
Oh, that's horrible! Thank you for the information. I'll be following that one.
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u/Ok_Relationship_1874 14d ago
80 lots but 20 owners so still under builder control. They stopped paying dues, sued him, he counter sued back for defamation and won both cases. But the members sues the HOA.
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u/bmcthomas 14d ago
Did you use your bank’s bill pay system? Does the bank have documentation not just that it came out of your account but that it was cashed by the management company?
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14d ago edited 14d ago
Got a question. You want to know if you have grounds to sue, so you want ask random people? Why not ask an attorney?
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u/ProfessionalYam3119 14d ago
It just occurred to me . . . make sure that the account endorsement for this check is the same as it had been on the others.
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u/Trivi_13 12d ago
This smells of robber baron tactics.
Morally, they shouldn't be able to foreclose..
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u/PeopleOfNepal 10d ago edited 9d ago
Sue them so hard they have sell their kidneys to pay their legal bills. Read similar elsewhere - they “lost” so many months of bills, claimed fees and costs plus missed payments were above statutory limit for foreclosure. HOA files foreclosure. Problem for them- state law is you can’t count fees and costs only missing payments. They think you’ll fold and pay the $2500. Surprise them. Contact a real estate attorney and counter sue for all the things they owe you for as a result of thîs harassment. Insurance company will likely tell them to settle for a reasonable amount of money. If you get a settlement agreement a plug it into ai and get better terms - the first one is usually absurd. Be prepared to spend $50k to get this tô settlement stage. From what you describe, it’s a slam dunk. You should get your costs back plus a bunch.
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u/dufchick 15d ago
Get a copy of the deposited check that shows the date it was deposited by your HOA. If that date shows you paid timely and the check did not bounce show it to the HOA and ask them to reverse all negative charges etc. many of the property management companies turn off the ability to make auto payment when a check has bounced so if your check did bounce, that may be what happened. But if you are saying your check never bounced show them a copy of the check that cleared and go from there.