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  1. #1
    Join Date
    Oct 2007
    Posts
    6

    Default Foreclosure Threat for Non-Payment of Fees, in Texas

    This issue is due to some property I own at a "camping resort" here in Texas. Owning the land gives you rights to go camping/fishing/etc at the resort.

    A number of years ago my parents signed a lot of their property over to me and my sister so that, as we got older, we could go on our own with our friends. The intent was for me to own the property and my sister to get "Spouse" rights with the resort.

    The land is paid for. I have paid the maintenance and membership fees every year since becoming an owner.

    In the last month my sister started getting letters and phone calls from a collection agency. Seems that the resort made a policy that required "Co-owners" to have to pay their own maintenance and membership fees. In a conversation with someone at the resort she made a threat to foreclose on our lot if we continued to refuse to pay.

    My questions are:
    Is it possible to foreclose on a piece of land that is paid for? For not paying fees that are paid in order to get access to the land?

    Here is the excerpt from the place's Rules and Regulations:
    "CO-OWNERS: Co-owners (more than one owner of a lot) can use the regular membership card and may bring in guests or can purchase Guest Cards if he/she has paid a full maintenance and water fee and will be extended the privilege of bringing in guests. Co-owners who wish to stay
    on RV pads or in cabins will be charged at the regular member rate. Once maintenance and water fees are paid, the Co-owner will receive a membership card and a new account number."

    I read no "shall"s in this line. It seems to me that the option to get membership benefits for a Co-owner are voluntary and the paying of the fees grants those rights. No pay= no play. Do they have any grounds to even threaten foreclosure or any other kind of action?

    Is there anything I may have missed?

    Thank you very much for your time,
    G

  2. #2
    Join Date
    Sep 2005
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    Default Re: Foreclosure Threat for Non-Payment of Fees, in Texas

    Typical landowner's association bylaws permit the association to put a lien against the property for unpaid dues, and it is possible to foreclose based upon the unpaid lien.

    The passage you quote appears to relate to what a co-owner may do if the dues have been paid, not to their obligation to pay dues.

  3. #3
    Join Date
    Oct 2007
    Posts
    6

    Default Re: Foreclosure Threat for Non-Payment of Fees, in Texas

    Here is the extraction from the BY laws:

    "The rights of the membership are subject to the payment of the annual charges levied by the
    Association, the obligation of which annual charges is imposed against each owner of and becomes a lien
    upon the property against which such annual charges are made as provided by the Agreement of
    Covenants, Conditions and Restrictions to which the properties are or will be subjected to and recorded in..."

    The bolded part now has me concerned. Does it mean each owner of THE property, or each owner of property? Is it appropriate to double charge someone for a single vote? The right to vote is tied to the land. One lot means one vote. Charging co-owners each the same fee as a single owner does not sound fair. Is this common practice? Certainly when two people co-own a home in a community with a home owner's association they are not double charged the annual fees?!?

    Thanks for your time,
    G

  4. #4
    Join Date
    Sep 2005
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    Behind a Desk
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    98,846

    Default Re: Foreclosure Threat for Non-Payment of Fees, in Texas

    "Each owner" seems pretty self-explanatory, and you know how the association interprets the rule.

    The purpose seems to be to prevent people from using "co-ownership" to burden the shared rights. (For example, if you "co-own" with 100 other people, is one fee truly sufficient to represent your burden on the facilities?)

  5. #5
    Join Date
    Oct 2007
    Posts
    6

    Default Re: Foreclosure Threat for Non-Payment of Fees, in Texas

    I can certainly see that. But this is a pay to play place. You pay the fee you get the membership card that lets you onto the property. No card= no access.

    But oh well. I guess it is time to determine if keeping the land is worth the back fees.

    In a case like this, where I am good on my fees and a co-owner is not... would a foreclosure in order to get fees and not mortgage non-payment cause a credit hit of any kind on me as well as my sister? Just her, or neither?

    Any idea?

    And thanks again Mr Knowitall for your time.

    G

  6. #6
    Join Date
    Mar 2005
    Location
    Michigan
    Posts
    28,906

    Default Re: Foreclosure Threat for Non-Payment of Fees, in Texas

    They can't effectively foreclose against her interest without foreclosing against you as well.

  7. #7
    Join Date
    Oct 2007
    Posts
    6

    Default Re: Foreclosure Threat for Non-Payment of Fees, in Texas

    I have the deed now and I have been unable to identify anything in the deed that requires the payment of any kind of membership fees or the following of any rules (IE the POA's bylaws)...

    Are there any other documents that I need to consider when determining what, if any, rights this Property Owner's association has as far as foreclosing on paid off land due to a co-owner's non-payment of membership dues?

    Thank you,
    G

  8. #8
    Join Date
    Sep 2005
    Location
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    98,846

    Default Re: Foreclosure Threat for Non-Payment of Fees, in Texas

    Take the deed and HOA bylaws to a real estate lawyer, and have them reviewed.

  9. #9
    Join Date
    Oct 2007
    Posts
    6

    Default Re: Foreclosure Threat for Non-Payment of Fees, in Texas

    Any recomendations on where to start looking for a real estate lawyer? Any certain key terms or phrases to look for or avoid when researching them? I do not like the idea of just googling "Fort Worth Real Estate Lawyer" and hoping for the best...

    Thank you,

    G

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