Desperate homeowner ensures HOA doesn't see a dime of their fraudulent fines: '[The] HOA never tried to collect or contact us again'

The house-buying process is stressful and difficult to navigate at any point—especially when it's your first, and you have no idea what you're doing or what to expect. The process will see results that can have drastic and possibly cataclysmic effects on your finances as well as on the rest of your life and its quality. It's exhausting. The process and paperwork involved are almost like a second job, with months upon months of weekends taken up by an endless stream of open homes. With possible pitfalls and snags lurking in every corner.

It's almost as if the process is intentionally obfuscated in order to create an industry that really need not otherwise exist, providing opportunity for parasites that claim to have your back but stand to make a wad of cash off you both coming and going no matter what you purchase—just as long as you purchase something.

But you do need to be careful; the bottom line here is that most people won't hesitate to be dishonest and screw you over when a large sum of money is on the line, and the last thing you want to do is see emerging black mold months after you moved in that was clearly painted over by the previous owner. But even with one of these parasites at your side, there's no telling whether or not everything will be above board or whether you'll end up with cracks in your foundations that were hastily and sloppily repaired.

And after all of that, with all that arduous process and risk behind you, you're still not going to be sure for some time that there is not some horrific problem lurking somewhere in the house waiting for you to happen upon it. And already new external problems are already emerging in the form of nosy HOA members with nothing to do but find bogus ways to issue fraudulent fines.

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Author image for Brad Dickson Brad Dickson
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  • When this homeowner bought their first home with their spouse, they thought they were facing an idyllic existence. Unfortunately, the picture-perfect life they envisioned was punctuated by a predatory HOA. A few years later, more trouble came their way in the form of a major economic downturn—the worst since the great depression.

    See, there was this thing that happened in 2008, and if you were young enough, you might not have been aware, but when the housing market and economy collapsed, bringing massive unemployment and crashing house prices. 

    Families were left with mortgages that were worth more than the value of their home. Those who found themselves jobless may have been forced to sell, taking massive financial losses in the form of leaving the housing market at its lowest. 

    The homeowner was unfortunately eventually forced to sell their home in a short sale. But they weren't going out without ensuring that the HOA, who was attempting to kick them while they were down with made-up fines, never saw a dime. See their account of events below, which they shared with this popular online community.

  • H.O.A. receives a check for all fines L OC Short history. Fall 2005, SO and I buy our first house together, We're happy. Babies on the way. House is cute and in a new subdivision, H.O.A. just formed. We're at the end of a blunt cul-de-sac, quiet, no traffic. Neighbors nice. 3-ish years later, the U.S. Economy the bed and wiped with the drapes. Over half of the homes in our subdivision have been foreclosed on or are in the process. Me and mine aren't paying on our mortgage. We've moved out, and a
    Via u/68Cadillac
  • He pays me a discounted rent, I'm not paying the mortgage, but maintaining the house with his rent. The H.O.A. is having troubles maintaining the common areas and keeping things clean because of lack of funds. Junky cars and dead/dying landscaping are everywhere. One home burned to it's foundation.
    Via u/68Cadillac
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  • A few months after my friend moves in, red, fire lane paint is applied to the curbs of all the cul-de-sacs in the subdivision. I'm furious because it prevents street parking in front of the house. Anytime I need to stop by to fix something or my tenant has a guest we must park in front of a neighbors house or in the common collector streets and walk in. I call the local fire department to ask why they need so many fire lanes seeing how there were no hydrants near by. They told me they
    Via u/68Cadillac
  • hadn't requested additional fire lanes, nor had they asked for curbs to be painted. They said anyone can just paint a curb red, it's the signage or a hydrants presence that makes it a legal fire lane. The paints just there to help you interpret the signage. I check and sure enough, no signs. Come to find out it's a ploy by the H.O.A. to drum up more funds. If they paint curbs red and call it a 'safety zone' their by-laws allow them to fine a home-owner for violating the safety zone. Funny also t
    Via u/68Cadillac
  • One evening, just past twilight, wearing a hi-vis vest, safety glasses, and work boots I paint over the red curb with boring gray paint, specifically designed for concrete with great coverage. I do the entire cul-de-sac. 3 weeks later it's red again. 2 days later: gray. 5 weeks: red. Then gray with silicone top sealer. Then red, that flakes off almost immediately. Then red again, flakes. Then a sign that reads "Safety Zone No Parking".
    Via u/68Cadillac
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  • For lack of payment, the home is now under notification of foreclosure and I'm working with an agency to help navigate and file all the paperwork needed so we can short-sell. Short- selling in this context means that although we promised to pay the bank $350,000 plus interest for the house, they'd forgive any amount we own as long as we turned the house over in good condition (e.g. not flush concrete down the toilets or poke pin holes in the water pipes). Which screws us, but it's better than ow
    Via u/68Cadillac
  • During a short-sale you're required to notify any potential parties that could have liens on the house. This includes the H.O.A. I'm up to date on my dues, and have no outstanding violations. So I think I'm in the clear. But no, the H.O.A. suddenly comes up with a whole list of violations that haven't been addressed or remedied for 5 months. Plus additional fines for the 'delay'. The H.O.A. said they notified me in November, but can't seem to produce copies of these multiple notices of violation
    Via u/68Cadillac
  • one in March listing all the outstanding violations. Examples: black stains on driveway, uncoiled garden hose, unapproved tree, missing bush, missing foliage, dead tree. I informed them that the stains were tire marks from driving into the garage. The unapproved tree they did, in fact, approve. The missing bushes they approved the removal. Here's a copy of the plan and your approvals with your name on it. It's not my fault you don't know what you approved.
    Via u/68Cadillac
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  • The dead tree. Many trees, tend to lose leaves in the fall. Like around November. They might look dead if you're just making up violations in February, but are just dormant and waiting for spring. Even if it was dead you can't replace a tree in November, December, January, or February. No nurseries sell saplings that late in the season, unless you want a yuletide tree. How can someone be reasonably expected to replace a 'dead' tree in the off-season?
    Via u/68Cadillac
  • The H.O.A. delays responding, and the short-sale is on a timer. If I don't have all legal items, payments for liens, and documents into the escrow officer by <DATE> my short-sale will fall through and I'll owe $350,000+interest on a $165,000 house that's soon to be foreclosed on. The H.O.A. fines and fees total $1,955. 45 dollars short of where felony fraud starts. I'm furious. This H.O.A. is gonna me one last time, and I'll pay for the experience.
    Via u/68Cadillac
  • So I talk to the escrow officer and see what she needs. "Only the money for the H.O.A. lien and you'll close escrow tomorrow." She's seen reams of these come through with similar amounts of fines requested by H.O.A.s that hold up short-sales. None exceed $2,000. I ask her what form of payment will satisfy her as an escrow officer. "Money Order, Cash, or Check. A check would be easiest for you, don't you think?”. If I write a check to H.O.A. for $1,955, then hand it to you, that'll satisfy escrow
    Via u/68Cadillac
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  • The next day... On the phone with the escrow officer. Sitting in my car in a parking lot. 9:01 am. Did the documents record? Did the short-sale go through? "Yes. I'll mail out finalized documents and any other items before close of business, today." Thank you. Hang up. I walk into the local branch of my bank and inform the teller, "I need to place a Stop-Payment on a check." Edit: My bad. I didn't include the "fallout" (Rule 7). Here goes: And H.O.A. never tried to collect or contact us again.
    Via u/68Cadillac
  • Angela Motorman - 6 hr. ago ...and then what? I mean, Bravo! and all that, but we want to hear the outraged squeals and desperate attempts to "fix" the situation. 68Cadillac OP · 5 hr. ago Added in an epilog.
    Via u/68Cadillac
  • Classic-Sherbert-399 6 hr. ago this is such an American post. I can't believe you can just stop paying a mortgage because your property value went down
    Via u/68Cadillac
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  • • storm_queen 5 hr. ago Officially you can't without loosing it but so many people could no longer afford their houses after the 2008 crash that they had too many houses to take at once. It was either let them squat while maintaining the house or try to sell an unmaintained house later.
    Via u/68Cadillac
  • • CompletelyPuzzled · 3 hr. ago "I'm still waiting for that trickle." It's like being the second person to drink a glass of water. What trickles down isn't water.
    Via u/68Cadillac
  • IamtheStinger - 4 hr. ago ...and then he waved them goodbye, as he rode into the sunset...
    Via u/68Cadillac
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  • deathriteTM 3 hr. ago HOAs should be made illegal. TheDuckFarm · 2 hr. ago • Their power should be limited but sometimes they provide very valuable things like a community well, a swimming pool or walking paths. Sometime they even run a golf course. Too many times however they just
    Via u/68Cadillac
  • Evil_Creamsicle · 3 hr. ago I would live in my car before. I would buy a home in an HOA neighborhood.
    Via u/68Cadillac
  • Mdayofearth 6 hr. ago Did the HOA have the cops go after you for check fraud? 68Cadillac OP. 5 hr. ago No. I suspect that the H.O.A. knew they'd have to reveal what the check was for. At discovery they'd be unable to produce original violation notifications. And because they didn't exist they sure couldn't produce proof they'd mailed 'em. Sure the H.O.A. could just 'make up' and back date notifications of violations, but every violation came with a picture of the offence. New and ongoing
    Via u/68Cadillac
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  • violations need new or updated pictures every month. They'd have to photoshop a whole suite of "dead tree", "bush missing", "hose uncoiled" shots from slightly different angles and changing seasons. And get everything correct (e.g. how was this picture taken in November when the occupant didn't buy that car until January?)
    Via u/68Cadillac
  • allazzz 1 hr. ago My takeaway from this story is that america(ns) fuccking baffle me
    Via u/68Cadillac
  • virtual_human · 6 hr. ago That might be considered check fraud. XXDankSniperKillaXx 5 hr. ago The statute of limitation on (check) fraud is 4 years. It's only fraud if a court says it's fraud. Would an H.O.A. making up violations and back dating them to manufacture larger fines be considered fraud?
    Via u/68Cadillac
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  • MrSelatcia 3 hr. ago If this happened then the escrow officer would be liable for it. Every underwriter has best practices that include having certified funds for something like this. I work in title and escrow and we do not take personal checks for ANYTHING.
    Via u/68Cadillac
  • JCtheWanderingCrow 50 min. ago I'm so glad I wasn't an adult in 2008. High school during the bubble was rough, I can't imagine having adult responsibilities during that nightmare. Also ehehehehe it HOA!
    Via u/68Cadillac
  • conundrum-quantified 49 min. ago WOW! You are extremely articulate and obviously highly intelligent. I have NEVER had occasion to compliment anyone on Reddit like this before. This is the MOST fascinating thing I've read today, and certainly reinforces my fears of HOA. (Never lived under their rules ever) TY for posting this, I hope things are going well for you and your family now.
    Via u/68Cadillac

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