QUESTION

Having issues with HOA lawyers, want payment before releasinfg lien on house

Asked on Jan 23rd, 2013 on Collections - Maryland
More details to this question:
My husband lost his job at the end of 2010. We were paying all our bills late with late fees for 2011. Twelve Trees Association accepted and cash every check. We took it as they were allowing us to bring the account up to date. Twelve Trees never contacted their lawyers of collections stating they were accepting our payments. Their lawyers did not advise their clients not to accept our checks or to pass our checks to them. The lawyers continue to charge their legal fees to us. We submitted documentation of all checks paid to Twelve Trees. We have been current as of now. My husband passed away Oct, 2012; I am dealing with the probate courts due to no will and my name was not on the deed. Their lawyers have put a lien on the house. I do not have much money and feel this amount is so unfair. I will be selling an old 99 Chrysler to help pay them off. Do I have a case to have this money $1,205.00 and lien written off? Also, they have not sent me my coupons for 2013 HOA payments and stop payments online. And I need programs to help me keep my house with a low income. I do not want to be homeless or live in a shelter. Please Help!!!
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1 ANSWER

Business Litigation Attorney serving Bethesda, MD
2 Awards
Your question about a home owners association and HOA assessments raises a number of important issues that may be of broad general interest to readers of this site. I have been representing clients on both sides of real estate issues in Maryland and D.C. for over 20 years. Commonly, the rights of a condominium “regime” to impose fees on the owners are set forth on a document recorded in the land records of the county where your property is located. Commonly, there is a reference in your deed to where that document is recorded. Sometimes there are other documents that make the homeowners responsible to the HOA and some documents can bind you that are recorded but not references in your deed. There are also county specific laws on HOAs. All these could alter the below. You mention that Twelve Trees Association accepted and cashed every check. Under Maryland “payment law”, absent an agreement with the HOA to let you catch up, the HOA can generally accept checks and simply apply them to your account without being bound to let you catch up. Maryland payment law and Maryland’s Uniform Commercial Code allow you to take certain actions with your checks and other payments that may give you some control over how your payments are applied. Since the HOA accepted the checks, it must at least give you credit for each of the payments you actually paid. Whether this was communicated to the lawyers or not, the lawyers must generally also credit you with the payments, as agents of their clients. If the HOA is not bound to a deal with you -- by agreement, endorsement, contract, law, etc. – then so long as money is owed, the HOA can still seek to run legal fees. However, Maryland’s highest court requires that attorneys fees be reasonable in comparison to the amount sought. See a Maryland State Bar Association article at http://www.msba.org/sec_comm/sections/litigation/newsletters/LitigationJan2012.pdf. See also the cited case of Monmouth, 416 Md. at 337. There are state, county and local assistance programs that might provide financial help that could free up other resources of yours to pay off the lien. Of course, other factors can also intervene that would alter the above. This response is not intended to address all possible issues. This is at best a general overview. I encourage you, and all other readers, before you act (or decide not to take some action) to seek competent, local legal counsel who can address the specific facts of your particular situation. This web site and the responses herein, including this response,  are designed for general information only. The information presented at this site should not be construed to be  and is not formal legal advice. No attorney-client relationship exists and no attorney-client relationship is formed or created by this response or any response on this website. Furthermore, this does not represent the views or opinions of LexisNexis or its affiliated companies.
Answered on Jan 26th, 2013 at 10:42 AM

This web site and the responses herein, including this response, are designed for general information only. There is no attorney/client relationship.

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