Handling Your First (or Next) HOA Assessment Lien Foreclosure for Condos and Subdivisions MCLE # 901294338 6.25 Hours (1.25 Hours Ethics) (Click on any blue link below to open articles) To update your MCLE records online, visit MyBarPage.com Requires internet access. MCLE records cannot be updated until after completion of the course Usage License Disclaimer & Disclosure Brochure Preface Copyright Course Director Biography For Our Registrants – Answers to Common Questions Texas Foreclosure Manual Bonus Materials Framing the HOA Foreclosure 1 Roy D. Hailey Laws Affecting HOA Liens and Foreclosures 2 Sharon Reuler HOA Pre-Foreclosure Due Diligence 3 Robert D. Burton Emily Jung Types of Homeowner Association Debts and Liens 4 Mitchell Katine HOA Foreclosure Demand Letters 5 David Zuehl Conoly Role of the Attorney in an HOA Foreclosure 6 Trisha Taylor Farine Expedited HOA Foreclosures 7 Brian S. Bellamy Non-Judicial HOA Foreclosures: Legal Considerations and Documentation 8 David W. Tomek Judicial Foreclosure of HOA Assessment Liens 9 Gregory S. Cagle
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Handling Your First (or Next) HOA Assessment Lien Foreclosure for Condos and Subdivisions
MCLE # 901294338
6.25 Hours (1.25 Hours Ethics) (Click on any blue link below to open articles)
To update your MCLE records online, visit MyBarPage.com
Requires internet access. MCLE records cannot be updated until after completion of the course Usage License Disclaimer & Disclosure Brochure Preface Copyright Course Director Biography For Our Registrants – Answers to Common Questions Texas Foreclosure Manual Bonus Materials Framing the HOA Foreclosure 1 Roy D. Hailey
Laws Affecting HOA Liens and Foreclosures 2 Sharon Reuler
HOA Pre-Foreclosure Due Diligence 3 Robert D. Burton Emily Jung
Types of Homeowner Association Debts and Liens 4 Mitchell Katine
HOA Foreclosure Demand Letters 5 David Zuehl Conoly
Role of the Attorney in an HOA Foreclosure 6 Trisha Taylor Farine
Expedited HOA Foreclosures 7 Brian S. Bellamy
Non-Judicial HOA Foreclosures: Legal Considerations and Documentation 8 David W. Tomek
Judicial Foreclosure of HOA Assessment Liens 9 Gregory S. Cagle
Handling Your First (or Next) HOA Assessment Lien Foreclosure for Condos and Subdivisions
Detours in the HOA Foreclosure Process 10 Judd A. Austin, Jr. Benjamin West
Right of Redemption and Other HOA Post-Foreclosure Considerations 11 Carey Venditti
Avoiding Wrongful Foreclosure 12 Justin Markel Marc D. Markel Sipra Boyd Addenda
FRAMING THE HOA FORECLOSURE
Author & Presenter: ROY D. HAILEY
Roberts Markel Weinberg Butler Hailey PC
State Bar of Texas HANDLING YOUR FIRST (OR NEXT)
HOA ASSESSMENT LIEN FORECLOSURE FOR CONDOS AND SUBDIVISIONS
November 14, 2014 Austin
CHAPTER 1
Framing the HOA Foreclosure Chapter 1
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TABLE OF CONTENTS
I. INTRODUCTION ................................................................................................................................................... 1 A. HOA Practice in General ................................................................................................................................. 1 B. Foreclosures in Particular ................................................................................................................................ 1
II. COURSE OVERVIEW ........................................................................................................................................... 2 A. General ............................................................................................................................................................ 2 B. Guide to Addenda ............................................................................................................................................ 2
III. SUMMARY ............................................................................................................................................................ 2
EXHIBIT 5 - CHART OF STATUTES+ AFFECTING HOA ASSESSMENT LIENSAND FORECLOSURE IN TEXAS ~ Condominiums and Subdivisions ~
1 - DEBT COLLECTOR2 - OWNER CHARACTERISTICS3 - HOA CHARACTERISTICS4 - PROPERTY CHARACTERISTICS5 - CHARACTERISTICS of LIEN or DEBT6 - FORECLOSURE METHOD7 - POST-FORECLOSURE ISSUES
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HOA PRE-FORECLOSURE DUE DILIGENCE
ROBERT D. BURTON EMILY A. JUNG
Winstead PC 401 Congress Avenue, Suite 2100
Austin, Texas 78701
State Bar of Texas HANDLING YOUR FIRST (OR NEXT)
HOA ASSESSMENT LIEN FORECLOSURE FOR CONDOS AND SUBDIVISIONS
November 14, 2014 Austin
CHAPTER 3
TABLE OF CONTENTS
I. INTRODUCTION ............................................................................................................................................................. 1 II. DEFINITIONS .................................................................................................................................................................. 1 III. PRE-FORECLOSURE DUE DILIGENCE .................................................................................................................... 1
A. The Engagement ................................................................................................................................................... 1
B. Pre-Referral Collection Efforts ............................................................................................................................. 1
C. Verify Corporate Status ........................................................................................................................................ 2
D. Review Governing Documents ............................................................................................................................. 2
E. Confirm Military Status ........................................................................................................................................ 2
F. Conduct Title Review ........................................................................................................................................... 3
G. Provide Notice to Lienholders .............................................................................................................................. 3 IV. OTHER PRE-FORECLOSURE DUE DILIGENCE CONSIDERATIONS ................................................................ 4
A. Composition of Delinquency ................................................................................................................................ 4
B. Payment Plans and Application of Payments ........................................................................................................ 4
C. Third-Party Debt Collection .................................................................................................................................. 5 V. CONCLUSION .................................................................................................................................................................. 5
EXHIBITS
Pre-Foreclosure Due Diligence Checklist ............................................................................................................. Exhibit A
Instructions for Verifying Active Duty Military Servicemember Status ............................................................... Exhibit B
Web Search Entry ....................................................................................................................................... Exhibit B-1
Sample Written Inquiry to Confirm Active Duty Military Servicemember Status with Military Branch ............. Exhibit C
Sample Notice of Intent to Foreclose to Lienholder .............................................................................................. Exhibit D
Sample Payment Plan ............................................................................................................................................ Exhibit E
HOA Pre-Foreclosure Due Diligence_________________________________________________________________________________________________________Chapter 3
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TYPES OF HOMEOWNER ASSOCIATION DEBTS AND LIENS
MITCHELL KATINE
Katine & Nechman LLP
1834 Southmore Boulevard
Houston, Texas 77004
State Bar of Texas
HANDLING YOUR FIRST (OR NEXT)
HOA ASSESSMENT LIEN FORECLOSURE
FOR CONDOS AND SUBDIVISIONS
November 14, 2014
Austin
CHAPTER 4
Types of Homeowner Association Debts and Liens Chapter 4
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TABLE OF CONTENTS
I. INTRODUCTION ............................................................................................................................................. 1 A. Foreclosure is a Harsh Remedy .................................................................................................................. 1 B. The Declaration is a Contract ..................................................................................................................... 1 C. Interpretation of Restrictions ...................................................................................................................... 2
II. GOVERNING DOCUMENTS AND STATUTES ........................................................................................... 3 A. Declaration ................................................................................................................................................. 3 B. Chapter 81: Texas Property Code (ATPC@) ................................................................................................ 4 C. Chapter 82: TPC ......................................................................................................................................... 5 D. Chapter 202: TPC ....................................................................................................................................... 5 E. Chapter 204: TPC ....................................................................................................................................... 5 F. Chapter 209: TPC ....................................................................................................................................... 5
III. LEGAL FEES .................................................................................................................................................... 5 A. General Rule ............................................................................................................................................... 5 B. Section 5.006:TPC: Attorney=s Fees in Breach of Restrictive Covenant Action ....................................... 6 C. Chapter 38.002: Texas Civil Practice and Remedies Code: Procedure for Recovery of Attorney=s Fees . 6 D. Chapter 37 (Declaratory Judgment), Section 37.004:Texas Civil Practice and Remedies Code: Subject
Matter of Relief .......................................................................................................................................... 7 E. Chapter 37 (Declaratory Judgment), Section 37.009:Texas Civil Practice and Remedies Code: Costs .... 7 F. (Condo) 82.113(a):TPC: Association Lien for Assessments ..................................................................... 7 G. (Condo) 82.161(a) and (b): TPC: Effect of Violation on Rights of Action and Attorney=s Fees ............... 8 H. (Non-Condo) Chapter 204.010(a)(11)(12): TPC: Powers of Property Owners= Association..................... 8 I. (Non-Condo) Chapter 209: TPC: Restrictions ........................................................................................... 9 J. Legal Fees After Violation Cure .............................................................................................................. 10
IV. INTEREST ....................................................................................................................................................... 11 A. Provided in Declaration ............................................................................................................................ 11 B. (Condo) 82.102(a)(12): TPC: Powers of Unit Owners= Association ........................................................ 11 C. (Condo) 82.113(a): TPC: Association=s Lien for Assessments ................................................................ 11 D. (Non-Condo) 204.010(a)(10): TPC: Powers of Property Owners= Association ....................................... 11
V. LATE FEES ..................................................................................................................................................... 11 A. Provided in Declaration ............................................................................................................................ 11 B. (Condo) 82.102(a)(12): TPC: Powers of Unit Owners= Association ........................................................ 11 C. (Condo) 82.113(a): TPC: Association=s Lien for Assessments ................................................................ 12 D. (Non-Condo) 204.010(a)(10): TPC: Powers of Property Owners= Association ....................................... 12
VI. COLLECTION COSTS ................................................................................................................................... 12 A. Provided in Declaration ............................................................................................................................ 12 B. (Condo) 82.113(a): TPC: Association=s Lien for Assessments ................................................................ 12 C. (Non-Condo) 204.010(11): TPC: Powers of Property Owners= Association ........................................... 12 D. (Non-Condo) 204.010(12): TPC: Powers of Property Owners= Association ........................................... 12
VII. FINES .............................................................................................................................................................. 13 A. Provided in Declaration or Bylaws .......................................................................................................... 13 B. (Condo) 82.102(a)(12): TPC: Powers of Unit Owners= Association ........................................................ 13 C. (Condo) 82.113(a): TPC: Association=s Lien for Assessments ................................................................ 13 D. (Non-Condo) 204.010(6): TPC: Powers of Property Owners= Association(possibly) ............................. 13 E. Fine Foreclosure Restriction 209.009: TPC: Foreclosure Sale Prohibited in Certain Circumstances ..... 13
VIII. CIVIL DAMAGES .......................................................................................................................................... 14 A. ' 202.004(c): TPC: Enforcement of Restrictive Covenants ..................................................................... 14
IX. CONCLUSION ................................................................................................................................................ 14
HOA FORECLOSURE DEMAND LETTERS
DAVID Z. CONOLY David Z. Conoly, P.C. 1930 Glenoak Drive
HOA ASSESSMENT LIEN FORECLOSURE FOR CONDOS AND SUBDIVISIONS
November 14, 2014 Austin
CHAPTER 6
Role of the Attorney in an HOA Foreclosure Chapter 6
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TABLE OF CONTENTS
I. INTRODUCTION ................................................................................................................................................... 1
II. WHY FORECLOSURE? ........................................................................................................................................ 1 A. Suspension of services and amenities .............................................................................................................. 1 B. Money judgments & liens ............................................................................................................................... 2 C. Suspension of board membership & voting privileges .................................................................................... 2 D. Neighbor shaming ........................................................................................................................................... 2
III. EDUCATING YOUR CLIENT .............................................................................................................................. 2 A. Know your Case .............................................................................................................................................. 2 B. Which foreclosure procedure do we use? ........................................................................................................ 3 C. Lien priority & mortgages ............................................................................................................................... 3 D. Right of redemption ......................................................................................................................................... 3 E. Realistic expectations for recovery ................................................................................................................. 3 F. Detours on the road to foreclosure .................................................................................................................. 3 G. Additional costs ............................................................................................................................................... 4 H. Payment plans .................................................................................................................................................. 4
IV. MISCELLANEOUS F.A.Q. .................................................................................................................................... 4
V. CONCLUSION ....................................................................................................................................................... 5
EXPEDITED HOA FORECLOSURES
BRIAN S. BELLAMY Savrick, Schumann, Johnson,McGarr, Kaminski & Shirley, L.L.P.
4330 Gaines Ranch Loop, Suite 150 Austin, Texas 78735
State Bar of Texas HANDLING YOUR FIRST (OR NEXT)
HOA ASSESSMENT LIEN FORECLOSURE FOR CONDOS AND SUBDIVISIONS
November 14, 2014 Austin
CHAPTER 7
Expedited HOA Foreclosures Chapter 7
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TABLE OF CONTENTS
I. PREFACE .......................................................................................................................................................... 1
II. INTRODUCTION ............................................................................................................................................. 1
III. EXPEDITED HOA FORECLOSURE IS NOT THE EQUIVALENT OF A JUDICIAL FORECLOSURE ... 1
IV. PROMULGATED FORMS ............................................................................................................................... 2
V. FILING A NON-JUDICIAL FORECLOSURE APPLICATION BY A SUBDIVISION ASSOCIATION ..... 2
VI. RESPONDING TO A NON-JUDICIAL FORECLOSURE APPLICATION ................................................... 3
VII. RULING ON A NON-JUDICIAL FORECLOSURE APPLICATION............................................................. 4
VIII. AUTOMATIC STAY AND DISMISSAL OF AN EXPEDITED NON-JUDICIAL FORECLOSURE PROCEEDING UPON FILING OF AN INDEPENDENT LAWSUIT ............................................................ 5
IX. WAIVER OF EXPEDITED FORECLOSURE ................................................................................................. 5
X. MEDIATION IN EXPEDITED FORECLOSURE PROCEEDINGS ............................................................... 6
APPENDIX A ................................................................................................................................................................ 7
APPENDIX B .............................................................................................................................................................. 11
APPENDIX C .............................................................................................................................................................. 14
APPENDIX D .............................................................................................................................................................. 17
APPENDIX E .............................................................................................................................................................. 19
APPENDIX F ............................................................................................................................................................... 21
APPENDIX G .............................................................................................................................................................. 23
APPENDIX H .............................................................................................................................................................. 25
NONJUDICIAL HOA FORECLOSURES: LEGAL CONSIDERATIONS AND DOCUMENTATION
DAVID W. TOMEK David Tomek PLLC
325 N. St. Paul Street, Suite 3300 Dallas, Texas 75201
HOA ASSESSMENT LIEN FORECLOSURE FOR CONDOS AND SUBDIVISIONS
November 14, 2014 Austin
CHAPTER 8
Nonjudicial HOA Foreclosures: Legal Considerations and Documentation Chapter 8
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TABLE OF CONTENTS
I. PREFACE .......................................................................................................................................................... 1
II. INTRODUCTION ............................................................................................................................................. 1
III. PREREQUISITES FOR FORECLOSING ASSESSMENT LIENS PURSUANT TO POWER OF SALE ..... 1 A. Condominium HOAs ................................................................................................................................. 1
1. TUCA Assessment Lien – Application, Scope, Enforcement, and Relationship to Assessment Lien in Condominium Declaration ............................................................................................................. 1
2. TUCA Assessment Lien – Creation, Perfection and Priority ............................................................. 2 3. Notices to and Communications with Other Lienholders .................................................................. 3
B. Subdivision HOAs ..................................................................................................................................... 3 1. No Statutory Assessment Lien with Power of Sale ............................................................................ 3 2. CC&Rs Assessment Lien ................................................................................................................... 3
IV. REAL PROPERTY NONJUDICIAL FORECLOSURE STATUTES .............................................................. 3 A. Chapter 51 .................................................................................................................................................. 4 B. Summary of Significant Changes to Chapter 51 Since 2003 ..................................................................... 4
V. FITTING ASSESSMENT LIEN FORECLOSURES INTO CHAPTER 51 ..................................................... 5
VI. TRUSTEES ........................................................................................................................................................ 5
VII. NOTICE OF FORECLOSURE SALE............................................................................................................... 5 A. Contractual Requirements .......................................................................................................................... 5 B. Statutory Requirements .............................................................................................................................. 5
C. Recommended Contents of Notice of Foreclosure Sale ............................................................................. 6
VIII. FORECLOSURE SALE .................................................................................................................................... 7 A. Conducting the Foreclosure Sale ................................................................................................................ 7 B. Permitted Bidders ....................................................................................................................................... 7
IX. POST-SALE MATTERS ................................................................................................................................... 7 A. Foreclosure Sale Deed ................................................................................................................................ 7 B. Distribution of Nonjudicial Sale Proceeds ................................................................................................. 8 C. No Petition by Unit Owner......................................................................................................................... 8
Appendix A - APPOINTMENT OF TRUSTEE .............................................................................................. 9 Appendix B - AFFIDAVIT OF FILING AND POSTING ............................................................................ 11 Appendix C - AFFIDAVIT OF MAILING .................................................................................................... 13 Appendix D - NOTICE OF FORECLOSURE SALE .................................................................................... 15 Appendix E - FORECLOSURE SALE DEED .............................................................................................. 17 Appendix F - FORECLOSURE SALE TRANSCRIPT ................................................................................. 22 Appendix G - AUTHORITY TO FORECLOSE ........................................................................................... 24
HOA ASSESSMENT LIEN FORECLOSURE FOR CONDOS AND SUBDIVISIONS
November 14, 2014 Austin
CHAPTER 9
Judicial Foreclosure of HOA Assessment Liens Chapter 9
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TABLE OF CONTENTS
I. PREFACE .......................................................................................................................................................... 1
II. INTRODUCTION ............................................................................................................................................. 1
III. AUTHORITY OF TEXAS HOMEOWNERS ASSOCIATIONS TO LEVY ASSESSMENTS AGAINST LOTS OR UNITS ............................................................................................................................ 2
IV. OBLIGATION OF HOMEOWNERS TO PAY ASSESSMENTS ................................................................... 2
V. CREATION AND PERFECTION OF ASSESSMENT LIENS ........................................................................ 3
VI. SCOPE OF ASSESSMENT LIENS .................................................................................................................. 3
VII. PRIORITY OF ASSESSMENT LIENS ............................................................................................................ 4
VIII. JUDICIAL FORECLOSURE OF ASSESSMENT LIENS ............................................................................... 5 A. Court of Appropriate Jurisdiction for a Judicial Foreclosure Lawsuit ....................................................... 5 B. Necessary Parties in a Judicial Foreclosure Lawsuit .................................................................................. 6 C. Pleadings in a Judicial Foreclosure Lawsuit .............................................................................................. 6 D. Affirmative Defenses in a Judicial Foreclosure Lawsuit ........................................................................... 7 E. Burden of Proof in a Judicial Foreclosure Lawsuit .................................................................................... 7 F. Final Judgment in a Judicial Foreclosure Lawsuit ..................................................................................... 8 G. Issuance of an “Order of Sale” ................................................................................................................... 8 H. Conducting a Judicial Foreclosure Sale ..................................................................................................... 9
IX. ADVANTAGES AND DISADVANTAGES OF JUDICIALLY FORECLOSING AN ASSESSMENT LIEN ........................................................................................................................................ 9
APPENDIX A ............................................................................................................................................................... 11
APPENDIX B ............................................................................................................................................................... 18
APPENDIX C ............................................................................................................................................................... 25
DETOURS IN THE HOA FORECLOSURE PROCESS
JUDD A. AUSTIN, JR. BEN A. WEST
Henry Oddo Austin & Fletcher, P.C. 1700 Pacific Avenue, Suite 2700
HOA ASSESSMENT LIEN FORECLOSURE FOR CONDOS AND SUBDIVISIONS
November 14, 2014 Austin
CHAPTER 10
Detours in the HOA Foreclosure Process Chapter 10
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TABLE OF CONTENTS
I. INTRODUCTION ................................................................................................................................................... 1
II. SERVICEMEMBERS CIVIL RELIEF ACT (SCRA) ........................................................................................... 1 A. SCRA basics .................................................................................................................................................... 1 B. Who is covered ................................................................................................................................................ 1 C. What is covered ............................................................................................................................................... 1 D. How to determine active-duty status ............................................................................................................... 2 E. Providing notice of SCRA benefits ................................................................................................................. 2 F. Effect of the SCRA on HOA foreclosures ...................................................................................................... 2 G. Proving “materially affected” .......................................................................................................................... 3 H. Servicemember waiver of rights ...................................................................................................................... 3 I. Consequences of violating the SCRA ............................................................................................................. 3 J. Important processes for HOAs with regard to the SCRA ............................................................................... 3
III. BANKRUPTCY ...................................................................................................................................................... 3 A. Bankruptcy basics ............................................................................................................................................ 3 B. What the Chapter 7 Means Test means for an HOA’s foreclosure efforts ...................................................... 4 C. Bankruptcy’s automatic stay ........................................................................................................................... 4 D. The expiration of the automatic stay ............................................................................................................... 4 E. Terminating the stay through litigation ........................................................................................................... 5 F. Steps the HOA and/or its managing agent must take ...................................................................................... 5 G. When a Chapter 13 debtor fails to pay ............................................................................................................ 5 H. Consequences of ignoring the automatic stay ................................................................................................. 6 I. Important processes for HOAs with regard to bankruptcy .............................................................................. 6
IV. FEDERAL TAX LIENS ......................................................................................................................................... 6 A. Federal tax lien basics ..................................................................................................................................... 6 B. Providing notice of the sale ............................................................................................................................. 7 C. Notice requirements ........................................................................................................................................ 7 D. IRS right of redemption ................................................................................................................................... 7 E. Important processes for HOAs with regard to federal tax liens ...................................................................... 8
V. PROBATE ............................................................................................................................................................... 8 A. Probate basics .................................................................................................................................................. 8 B. Types of creditor claims .................................................................................................................................. 9
C. Receiving notice of the debtor’s death .......................................................................................................... 10 1. Foreclosure after death with dependent administration 10 2. Foreclosure after death with an independent administration 10 3. Required notices 10
D. Statute of limitations ..................................................................................................................................... 11 E. The HOA’s options when probate proceedings have not been opened ......................................................... 11
1. Opening a creditor’s administration 11 2. Wait four years to foreclose 11
F. Important processes for HOAs with regard to probate issues ....................................................................... 12
VI. CONCLUSION ..................................................................................................................................................... 12
RIGHT OF REDEMPTION AND OTHER HOA POST-FORECLOSURE CONSIDERATIONS
CAREY GUNN VENDITTI 401 Congress Avenue, Suite 2100
HOA ASSESSMENT LIEN FORECLOSURE FOR CONDOS AND SUBDIVISIONS
November 14, 2014 Austin
CHAPTER 11
Right of Redemption and Other HOA Post-Foreclosure Considerations Chapter 11
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TABLE OF CONTENTS
I. SCOPE .................................................................................................................................................................... 1
II. APPLICABLE LAW ............................................................................................................................................... 1
III. RIGHT OF REDEMPTION AND OTHER POST FORECLOSURE ISSUES ..................................................... 1 A. An Owner’s Right of Redemption ................................................................................................................... 1
1. TUCA allows the owner of a condominium unit purchased at a foreclosure sale to redeem the property up to 90 days after the date of the foreclosure sale. .................................................................. 1 2. Chapter 209 allows the owner of property in a residential subdivision or the lienholder of record to redeem property purchased at a foreclosure sale up to 180 days after the date of the sale. ..... 2
B. Post-Foreclosure Considerations: Notice to Vacate and Eviction Proceedings .............................................. 3 1. A tenant or occupant of a residential property at the time it is purchased at a foreclosure sale must be given written notice to vacate under Texas law; however, current federal law set to expire at the end of 2014 provides additional protections for tenants with a written lease who are not in default. ............................................................................................................................. 3 2. Chapter 24 outlines the procedure that an HOA must follow in order to lawfully evict an individual from the residential property they are occupying. .................................................................. 3
IV. CONCLUSION ....................................................................................................................................................... 4
APPENDIX A - FORMS RELATING TO OWNER'S RIGHT OF REDEMPTION .................................................... 7
APPENDIX B - FORMS RELATING TO THE NOTICE TO VACATE AND THE EVICTION PROCESS ........... 15
AVOIDING WRONGFUL FORECLOSURE
Presented by: MARC MARKEL
Roberts Markel Weinberg Butler Hailey PC
Authored by: MARC MARKEL
SIPRA BOYD JUSTIN MARKEL
Roberts Markel Weinberg Butler Hailey PC
State Bar of Texas HANDLING YOUR FIRST (OR NEXT)
HOA ASSESSMENT LIEN FORECLOSURE FOR CONDOS AND SUBDIVISIONS
November 14, 2014 Austin
CHAPTER 12
Avoiding Wrongful Foreclosure Chapter 12
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TABLE OF CONTENTS
I. INTRODUCTION ............................................................................................................................................. 1
II. DEBT OWED TO PROPERTY OWNERS’ ASSOCIATIONS ........................................................................ 1 A. Assessments, Fines, Fees, and Interest Owed ............................................................................................ 1
1. Kinds and Amounts of Debt ............................................................................................................... 1 2. Confusing or Inconsistent Actions by Associations in Relation to the Debt ...................................... 1 3. Changing Management Companies .................................................................................................... 2
B. Debt Secured by the Association’s Lien .................................................................................................... 2
III. METHOD OF FORECLOSURE (JUDICIAL, NONJUDICIAL, AND EXPEDITED) ................................... 3
IV. NOTICES PROVIDED BY THE ASSOCIATION ........................................................................................... 3 A. Requisite Notices ....................................................................................................................................... 3 B. Errors in the Pre-Foreclosure Notices ........................................................................................................ 3
1. Errors in the Stating the Owner’s Name or Address .......................................................................... 3 2. Errors in Mailing the Notices to the Owner ....................................................................................... 3
C. Death, Bankruptcy, and Divorce of Owners .............................................................................................. 4
V. ERRORS IN THE FORECLOSURE SALE ...................................................................................................... 4
VI. INADEQUATE SELLING PRICE AND CAUSAL CONNECTION .............................................................. 5
VII. CONCLUSION .................................................................................................................................................. 5
APPENDIX A ................................................................................................................................................................. 7
ADDENDA
State Bar of Texas HANDLING YOUR FIRST (OR NEXT)
HOA ASSESSMENT LIEN FORECLOSURE FOR CONDOS AND SUBDIVISIONS
November 14, 2014 Austin
ADDENDA CONTENTSADDENDUM A - GLOSSARY
A-1 Topical Glossary
A-2 Alphabetic Cross-Reference to Topical Glossary
ADDENDUM B - FORECLOSURE STATUTES
B-1 Texas Property Code, Chapter 51, Provisions Generally Applicable to Liens
B-2 Texas Rules of Civil Procedure, Rule 735 (Foreclosures Requiring a Court Order) & Rule 736(Expedited Order Proceeding)
G-1 Bibliography of HOA Assessment Lien Foreclosure Resources
G-2 Summary of Contents to Texas Foreclosure Manual, Third Edition (2014), by State Bar ofTexas
ADDENDUM H - MISCELLANEOUS
H-1 The Texas Lawyers Creed, A Mandate for Professionalism, promulgated by the SupremeCourt of Texas and the Court of Criminal Appeals on November 7, 1989
Handling Your First (or Next) HOA Assessment Lien Foreclosure for Condos & Subdivisions________________________________________________________________________________________________________Addenda