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What happens when a HOA isn’t an HOA? The case of the missing representative…

By
Real Estate Agent with eXp Realty LLC 200311024

One of my listings in Beaverton, Oregon is in escrow, and though this would seem to be great news, we seem to have run in to a little snag. It seems the owner who has owned the home since 2001 and has never paid and HOA found out from title that according to the title records the HOA needs to be contacted to make sure there are not HOA dues that are due from the seller upon close.

HOA (Home Owners Association)

Here is where the problem lies. She bought the Beaverton, property because there was no HOA. Seems there was and the previous owner didn’t know about it either. Now, the fun part was when we contacted the person who is charge of the HOA, they said they haven’t been in charge of the HOA since 2002 when they moved out of the Beaverton neighborhood.

So, here we are some 8 years later and no new HOA president seems to have ever been elected and the HOA seems to have vanished in to thin air. But, title wants an escrow account to be set up just in case they magically reappear sometime in the future, as this is a short sale and the bank won’t let it close unless this has been set up either.

But, as for now, the HOA is missing and no matter how many times I drive through the Beaverton neighborhood with my big black hat saying “abracadabra” no rabbit or HOA has appeared. When buying a home make sure you read all the paperwork very carefully, as though the owner claimed they knew nothing of an HOA when they bought the property, when she went back through the papers she signed in 1991 there was a paper the she acknowledge that she new about the HOA and the possible dues.

Talk to your agent and make sure you read everything you sign or it could cost you, or delay your closing, if you should ever want to sell in the future. If you are looking to buy or sell in Beaverton, Oregon, give me a call at 503-524-9494 or email me at Todd@IFoundYourNewHome.com, my team and I would love to help you home!


 

Comments(12)

Deborah "Dee Dee" Garvin
C2 Financial - San Diego, CA
C2 Financial

Todd,  Okay, this is first for me!  I certainly have more than my share of scary HOA stories, but have never had one go MIA!  Suggested....looking forward to seeing some additional comments.

Dec 04, 2010 12:53 AM
Deborah "Dee Dee" Garvin
C2 Financial - San Diego, CA
C2 Financial

Todd,  Okay, this is first for me!  I certainly have more than my share of scary HOA stories, but have never had one go MIA!  Suggested....looking forward to seeing some additional comments.

Dec 04, 2010 12:53 AM
Kristin Johnston - REALTOR®
RE/MAX Platinum - Waukesha, WI
Giving Back With Each Home Sold!

Todd, great story, well, not great, but you know what I mean!  This is a first for me too!

Dec 04, 2010 02:11 AM
Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

I've heard of these situations from others.  In Florida there's a procedure to go through for abandoned HOA's.

Dec 04, 2010 03:04 AM
Teresa Fiveash, ABR
MidSouth Residential, LLC - Memphis, TN

Wow, Todd!  Will you let us know how this turns out?  Very interesting!  I haven't dealt with alot of HOA's but would like to hear the end of the story.  Best wishes to you on this short sale.

Dec 04, 2010 03:30 AM
Todd Clark - Retired
eXp Realty LLC - Tigard, OR
Principle Broker Oregon

It is scary that no one seems to know anything about the HOA and that we can't do anything until we do. But, I promise as soon as I figure out what we are going to do I'll update everyone.

Dec 04, 2010 08:25 AM
Michael Jacobs
Pasadena, CA
Pasadena And Southern California 818.516.4393

Todd - thanks for sharing this post.  I'd be interested to see how this turns out for you and your client as I have never heard anything about an abandoned HOA.  Looking forward to hearing of your successful closed transaction.  

Dec 04, 2010 04:46 PM
Andrzej Niemyjski
Realty One Group - Sun City West, AZ

So we have problems when HOA exists and now we have problems when HOA doesnt exists.

Dec 04, 2010 04:55 PM
Mike Jaquish
Realty Arts - Cary, NC
919-880-2769 Cary, NC, Real Estate

Todd,

I have posted a couple of Localism items on neighborhoods that come up on GOOG when a Seller, Buyer, or Closing attorney is searching for the HOA contact to confirm the Seller is current on their dues.  Then they call me.

 It is always someone from the neighborhood, but people quit the job often enough that finding the current president is often very difficult.

Dec 05, 2010 01:20 AM
Sheila Newton Team Anderson & Greenville SC
Berkshire Hathaway HomeServices - C. Dan Joyner - Anderson, SC
Selling the Upstate since 1989

Todd,

This is a real problem now days since so many builders went into bankruptcy... Many of the HOAs mentioned in restrictions in our area were never actually formed.. Even those that knew there was supposed to be an HOA, don't know what to do about paying or getting the services they were supposed to have..

 One of the issues it sounds like in your situation is that the atty just said "sign here " at the previous closing and that is what they did without knowing what the form said. Some of that is on the atty and some is on whoever was her buyer's agent. And of course, she has to take her share of the blame since she didn't read what she was signing..

Dec 05, 2010 07:23 AM
Rodney Mason, VP of Mtg Lending
Guaranteed Rate NMLS# 2611 - Atlanta, GA
AL,AR,AZ,CA,CO,FL,GA,IN,MI,MS,NC,NV,SC,TN,TX,VA,WA

I have seen where HOA's have been disbanded.  Its up the to title company/closing attorney to address once they have the findings.

Dec 05, 2010 02:33 PM
Terri Poehler
Realtor - Coral Springs, FL
Coral Springs Real Estate Agent

Todd, I had to door knock to find the HOA president once. The original skipped town after taking everyones money. The poor new one is learning as he goes.

Dec 06, 2010 12:31 PM