QUESTION
Are there requirements to pay fines to HOA when fine process not followed?
Asked on May 28th, 2012 on Bankruptcy - Michigan
More details to this question:
My HOA via their Attorney placed a lien on my home for unpaid fines. They had sent me 3 notices of violation, first was no charge, 2nd was for $300 (2 line items for $100, 1 for $50 and 2 for $25), the 3rd was a repeat. In the HOA bylaws, there is a fine schedule of $25 for the 2nd violation and $50 for the 3rd violation. The Attorney for the Association has returned with an offer from the association to waive the some of the fines (5 x $25) for the 2nd letter and (5 x $50) for the 3rd. They have refused to waive the late fees and legal costs. It appears to me the Association has not attempted to follow the Procedure and Fine schedule set in the bylaws. What am I obliged to pay?
3 ANSWERS
You need to discuss this issue with an attorney. Every home owner's association is different. It is very common for all assessments of the association to become a lien on your house. As long as you have enough equity to cover the liens, the association is a secured lender. The association is required to follow Michigan law and its governing documents.
Answered on Jun 07th, 2012 at 12:53 AM
Business Formation Attorney serving Westland, MI
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Clos, Russell & Wirth, P.C.
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Assuming the by laws you have are up to date, all parties are bound by the by laws as written. Thus, your fines would be limited to the amounts set forth in the fine schedule but at the same time you would be responsible for the costs and attorney fees (assuming that there is such a provision in the by laws). If the association will not move from their position in this regard you will have to file a lawsuit in the circuit court.
Answered on Jun 07th, 2012 at 12:32 AM
Appellate Attorney serving Grosse Pointe Farms, MI
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Musilli Brennan Associates, PLLC
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You need to explain all of the circumstances to an attorney in order to get valid advise. Generally HOA's do not wave late fees, interest or attorney's fees.
Answered on Jun 07th, 2012 at 12:22 AM