Condo Association Management Blog

Retain a lawyer!

Despite the best intensions of those that partcipate on this blog, this is definitely a legal matter for which I agree with Joe. Your mother really needs to get a lawyer. My suggestion is that you do it as soon as possible.

Lawyer up!!! It sounds as if your mother was denied due process and was illegally foreclosed upon. She is probably entitled to damages for an illegal process ( assuming she did not ignore proper notifications). Such proceedings are not suposed to be done without the respondant being properly notified in advance. Is it at all possible your mother deceptively or incompetantly ignored notifications from the court or sheriff? In some places they just post these notices on the door, others they have to send them with a signed receipt?

It sounds to me like a vindictive person on the Board which often is the case. Boards will often do this thru association lawyers who just do it to make money. How sad. I would file a complaint with your state condo advocate.

Please, if you do hire a lawyer, make sure he is 'honest' and has NO connection with the board!

I'm posting below some info regarding the difference between a judicial and nonjudicial foreclosure. The state of TX does not have judicial foreclosures so I'm surprised that you said that was the type used for your Mom's property. Also there is no redemption period in the state of TX, actually in the majority of states.  
 
Your Mom really needs to hire a lawyer especially if she was not late paying her assessments. Whether she was late paying her mortgage has no effect on the HOA foreclosing, only the mortgage co can foreclose for nonpayment of mortgage. Nonpayment of taxes is only a state concern.

$8,000 in legal fees for $200 would seem excessive. I have seen foreclosures that cost that much, but it is usually over SEVERAL YEARS time and only when the owner is fighting the process. 
 
Get an attorney. You may also be able to file a complaint with the bar association against the attorneys involved.

Bill: 
 
A couple of things are confusing: If your mother has no documentation I would advise you to go to your county website and pull the case because this is public information. All documents regarding the case may even be available for you to view and print off starting with the lien being filed.  
 
1. Legal attempts to serve your mother foreclosure documents would have been made. Most counties have tracking numbers showing attempts to serve her and they may also be available on line.  
 
2. Some states also post on the door giving you time to vacate the property, again this info is tracked also.  
 
3. Taxes,if escrowed with the mortgage would have been paid by the mortgage company to avoid a tax lien so that may be why the taxes were never delinquent.  
 
4. She needs to contact her Wells and see what they say. If they bought the unit back at sheriff's sale, she stopped being responsible for the Association fees the day it was sold. If is was not repurchased by the bank she would be responsible for Association fees until it sells, even if it is vacant. Most banks are not in a hurry to repurchase property.  
 
5. Regarding her credit, it's pretty much messed up because the foreclosure will stay on her credit for at least 7 years. I would strongly suggest you go online BEFORE January 1, 2012 and pull and print a free copy of her credit report at annualcreditreport.com . You are entitled to a free copy once a year. This way you will know exactly what you are looking at and this report included Experian, Transunion and Equifax. 
 
4. You mentioned buying the unit "back from the Association" Did the Association buy the unit at the sheriff sale? 
 
5. If she does get an attorney (have her try legal aid or see if an attorney will handle her case pro bono (some will) she would also get copies of all documents in the case. Unfortunately, the Association attorney may not provide documents unless advised to do so by the board.  
 
6. The foreclosure process in most states takes a couple of years, when did this start? Sounds to me like if you are just getting involved, she may not have known what to do and is asking for help after it may be too late especially if the state redemption period has expired. What state is the property?  
 
Good Luck and I hope this was helpful. 
 
BTW- All commenting here stating the Board may be vindictive don't realize if an owner does not pay it hurts the total Association and no one gains anything with a empty unit or wasted legal fees.

Mary, 
 
 
 
Here's the info I said I would post. I hope this is helpful to you. 
 
 
 
Judicial and Non-Judicial Foreclosures 
 
 
 
Each state in the U.S. handles it's real estate foreclosures differently, it's important to understand those differences and know your specific state's procedures. The terms used and time frames vary greatly from state to state, but the following information provides a general overview of the different processes and considerations. If you haven't done so yet, you can review our guide to each state's procedures at foreclosure procedures. 
 
 
 
Judicial Foreclosures 
 
 
 
Judicial foreclosures are processed through the courts, beginning with the lender filing a complaint and recording a notice of Lis Pendens. The complaint will state what the debt is, and why the default should allow the lender to foreclose and take the property given as security for the loan. The homeowner will be served notice of the complaint, either by mailing, direct service, or publication of the notice, and will have the opportunity to be heard before the court. If the court finds the debt valid, and in default, it will issue a judgment for the total amount owed, including the costs of the foreclosure process. After the judgment has been entered, a writ will be issued by the court authorizing a sheriff's sale. The sheriff's sale is an auction, open to anyone, and is held in a public place, which can range from in front of the courthouse steps, to in front of the property being auctioned. Sheriff's sales will require either cash to be paid at the time of sale, or a substantial deposit, with the balance paid from later that same day up to 30 days after the sale. Check your local procedures carefully. At the end of the auction, the highest bidder will be the owner of the property, subject to the court's confirmation of the sale. After the court has confirmed the sale, a sheriff's deed will be prepared and delivered to the highest bidder, when that deed is recorded, the highest bidder is the owner of the property. 
 
 
 
Non-Judicial Foreclosures 
 
 
 
Non-judicial foreclosures are processed without court intervention, with the requirements for the foreclosure established by state statutes. When a loan default occurs, the homeowner will be mailed a default letter, and in many states, a Notice of Default will be recorded at approximately the same time. If the homeowner does not cure the default, a Notice of Sale will be mailed to the homeowner, posted in public places, recorded at the county recorder's office, and published in area legal publications. After the legally required time period has expired, a public auction will be held, with the highest bidder becoming the owner of the property, subject to their receipt and recordation of the deed. Auctions of non-judicial foreclosures will generally require cash, or cash equivalent either at the sale, or very shortly thereafter. 
 
 
 
It is important to note that each non-judicial foreclosure state has different procedures. Some do not require a Notice of Default, but start with a Notice of Sale. Others require only the publication of the Notice of Sale to announce the sale, with no direct owner notification required. You need to know the specific procedure for your state. 
 
 
 

Get a lawyer, and hurry. Contact, if any, an agency that protects senior citizens from financial exploitation and fraud in your state. Try to find a legal aid clinic that might be of help. Your board will sell that condo for far more than what she owed and their court costs, and have a windfall. It is better to pay board fees, and fight later. I hope things work out for you.

Bill, (original poster) 
 
Please let us know how this works out. It is an interesting case from a legal point of view, though tragic for your mother. I would do what others have recommended--get a good lawyer Who knows about foreclosures and get the files so you can see exactly what the situation was. Your mother could be confused as to what happened or she has been scammed.

Bill: 
 
Another reason you may want to contact Wells Fargo directly is because the OCC is requiring the top 14 mortgage companies (Wells Fargo is one of them) to review and correct issues with their foreclosure practices (remember the robo signing problem). If your foreclosure was between 1/1/09 and 12/23/10 you may be able to request a review. Your mom may be receiving a letter to review her mortgage foreclosure and to make sure there were no errors, and all options for loss mitigation were exhausted before foreclosure. remediation could happen.

It would be better to pay all fees and do the buy back, and simultaneously sue, if at all possible.  
 
As noted by other posters, there should be a paper trail with the county court system on file that you can begin to research on your own but you really need a lawyer to consult about the specifics of the case. You can per se, (alone without a lawyer, file a motion of discovery to get all the papers and records regarding the foreclose and the notices. See the advice of the other posters.

in march 2011 i was noticed i owed 2900 in condo fees for 2010. a good faith agreement was reached but apparently the lawyer wasn't aware of it. a lien was filed for $4100. i responded with a note about the monthly payments i have been making. sept. a notice to foreclose was filed. 2 hearing and 2 denials. on nov 13 a judge under extreme duress ruled that i owed the assoc. 7000 and gave me 4 mths. i haven't recieved any letters or notices but the lawyer filed public notice and court docs. now it looks like i may be forced out on mar.12 as the foreclosure sale hearing is set. i am a senior. these filings are illegal due to the good faith agreement, the payments i have been making, the sub-stitute judge duress at time of ruling, and other conflicts of interest and possible conpiracies between the assoc. and there lawyer. can i stop this?

I don't believe the board did not notify your mother. People pay your fees or suffer the consequences. It is not fair to the other unit owners to have to pick up your share because you can no longer afford to live there. do everyone a favor and sell

@cathy sutter & @bill - URGENT - PLEASE CONTACT ME AT THE FOLLOWING EMAIL RIGHT AWAY: 
 
MOGNETMAX@YAHOO.COM 
 
THIS EXACT THING HAS HAPPENED TO US AND LOVED ONES - WE HAVE SOME IDEAS AND WAYS TO FIX THIS MESS - I AM NOT AN ATTORNEY AND I DON'T CHARGE MONEY, BUT AT LEAST I CAN ESTABLISH SOME COMMUNICATION WITH YOU TO TRY AND HELP ASAP!!! I AM VERY CONCERNED THAT YOU ARE BEING TAKEN ADVANTAGE OF BY SOME TERRIBLE SCAM SCUM PEOPLE.

Bill and all responders: This does not appear to be a mortgage foreclosure, rather an Association foreclosure for non-payment of assessments. Quite different than one for a mortgage. Additionally, if there were no other bidders at the foreclosure sale, the Association would take title subject to the mortgage. The mortgage company would not generaly bid on this type of foreclosure 
 
 
 
Your issue is strictly with the Association. In almost all states, the Association is required to notify the owner of record throughout the proceeding both by regular mail and certified service. Additionally, there would be a process server who would serve the owner personally. It is virtually impossible not to be aware that a foreclosure is in process by the association. 
 
 
 
The best advice is to retain the services of an attorney with some experience in association law and TALK with the Association.