Judgement and Foreclosure for Unpaid Assessments

[samaritymiller]

Jurisdiction

Texas

Hello,

Here's my problem..........
My husband and I have been out of work and were behind on the HOA fees at my home (house is in my name) in Fort Bend County Texas (Richmond, Texas). I've owned this home for 8 years and this is the first time I've ever not paid. The last demand letter stated I owed $2,000+ which is for two years of fees. I have every intention of paying them but am playing catch up on every other bill here in my home including my mortgage.

I've just been officially served sued and the plaintiff (HOA) is (1) obtaining a judgment for unpaid assessments and other charges legally due and owing to the Plaintiff; and (2) foreclose its lien for unpaid assessments and other charges legally due and owing to the Plaintiff that are secured by the Plaintiff's lien on the property in question.

I also have 20 days to respond with a written answer or a default judgement will be taken against me.

My questions..........
1. Can they legally foreclose on my house?
2. Should I respond?
3. What type of a response would be best?
a. I am willing to do a payment plan, I just don't have the whole amount.
4. What is a judgment?

Thank you so much!! I've heard horror stories......Thank you sooo much!!
Samarity Miller

 

[adjusterjack]

Can they legally foreclose on my house?

Yes.

Should I respond?

Yes. If you don't, they win by default.

What type of a response would be best?

A response prepared by an attorney who knows how to defend you against a lawsuit. You don't know how and that's why not having a lawyer is so dangerous.

I am willing to do a payment plan, I just don't have the whole amount.

Talking about paying is not paying. Paying is paying. Not having the "whole" amount implies that you have some of it so why haven't you paid what you have?

If you have some money, now it the time to contact the HOA lawyer and say "I have a check for X dollars made out to the HOA, can we start a payment plan and have the lawsuit dismissed?"

What is a judgment?

A judgment is a piece of paper that says "you lose" and the other party gets what they asked for.

 

[army judge]

Home foreclosure is Texas is usually impossible, thanks to our constitution.

The one exception is the lender's right to foreclose.

What generally occurs, especially the varying exemptions available in Texas, is a lien is placed on the title/deed to the property.

That said, you'd be prudent to discuss the matter with a couple of Texas licensed attorneys specializing in real estate or property law.

Normally the initial consultation is offered at no charge.

Be sure you take the CCRs and other pertinent documentation with you.

For a couple hundred bucks (give or take) you can commission a written legal interpretation of the matter.

 

[samaritymiller]

Home foreclosure is Texas is usually impossible, thanks to our constitution.

The one exception is the lender's right to foreclose.

What generally occurs, especially the varying exemptions available in Texas, is a lien is placed on the title/deed to the property.

That said, you'd be prudent to discuss the matter with a couple of Texas licensed attorneys specializing in real estate or property law.

Normally the initial consultation is offered at no charge.

Be sure you take the CCRs and other pertinent documentation with you.

For a couple hundred bucks (give or take) you can commission a written legal interpretation of the matter.

So legally because of the Texas Homestead Law they cannot take my home. Just place a lien on it? What's a lien?

 

[adjusterjack]

So legally because of the Texas Homestead Law they cannot take my home.

Not exactly. The Texas Homestead law may give you a defense but you may have to properly raise that defense or they may still win if you haven't raised it.

What's a lien?

General information from Nolo.com:

A lien is a notice attached to your property telling the world that a creditor claims you owe it some money. A lien is typically a public record. It is generally filed with a county records office (for real property) or with a state agency, such as the secretary of state (for cars, boats, office equipment, and the like). Liens on real estate are a common way for creditors to collect what they are owed. Liens on personal property, such as motor vehicles, are less frequently used but can be an effective way for someone to collect.

To sell or refinance property, you must have clear title. A lien on your house, mobile home, car, or other property makes your title unclear. To clear up the title, you must pay off the lien. Thus, creditors know that putting a lien on property is a cheap and almost guaranteed way of collecting what they are owed—sooner or later.

Generally, creditors have the right to have the property sold to pay off the lien, usually by way of a foreclosure sale. However, except for tax liens (see below), they rarely do so. This is because in most cases your mortgage was placed on the property before the liens and so must be paid off before any liens are paid. If the creditor forecloses on the lien, it has to keep up the payments on the mortgage or lose the property.

Instead of forcing a foreclosure sale, creditors usually wait until the property is sold. Buyers often won't buy the property unless the title is clear, meaning it has no liens. So, the seller will use part of the purchase price to pay off the lien.

What is a Property Lien? | Nolo.com

 

[army judge]

So legally because of the Texas Homestead Law they cannot take my home. Just place a lien on it? What's a lien?

I strongly urge you to invest in yourself, not by spending money, but by visiting a couple lawyers as I suggested.

It'll only cost you 20-30 minutes at each lawyer's office.

What you'll learn will be life changing, in so much as your home is concerned.

Yes, liens other than lender liens, can only cloud your title/deed.

Even governmental agencies find it hard, often impossible to take a home by forfeiture for property taxes in Texas.

It all goes back to why our legislators centuries ago created the homestead exemption and attendant statutes later on.

The hated, reviled HOAs across the Republic of Texas aren't able to pull off in Texas what they regularly do in states across the USA.

Even if you did nothing, the debt would increase, interest would be added, but that alone won't cause your home to be foreclosed and sold to any errant bidder at a sheriff's sale.

Those foreclaosure sales do occur, but they take years to be consummated, mate, in Texas.

The vast majority of those sales are caused by debtor's failing to pay their notes, and that process is elongated in Texas.

If you live in Harris, Tarrant, Bexar, and Travis counties they occur more often.

If you live in the smaller counties (population wise), they are rare.

Even in Potter, Randall, McClennan, Bell, etc.. they take three to four years, often five or six.

In Texas, people die with liens on their property.

Then, and only after the souse is dead, too; can an attempt be made to seize and sell the home. I forgot, it includes minor children, too. Texas wanted to protect orphans.

If you're handicapped, a veteran, or widow/widower of a veteran, or a disabled veteran, or widower/widow of a disabled veteran your home can't be touched while you're alive.

This isn't because of statute alone, its in our wonderful constitution.

Its an interesting read, if you're curious about how this all came to be in Texas.