QUESTION
Should I sign the lien agreement from HOA if I don't know the details of the agreement?
Asked on Sep 30th, 2015 on Real Estate - California
More details to this question:
HOA of my property started a special assessment in my complex in July (200 condos ;20 townhomes). I own a townhome and based on the square foot of my property, I have to pay $40,000 for the assessment. I was not able to pay lump sum. HOA sends me a statement every month for $300.00 which is half principal and half interest including the fees. HOA indicated a one year loan from the line of credit for %3.5 interest and after a fixed loan for %5.5 for 15-20 years. HOA didn't give me the details of my loan and interest for my property but sent a voluntary lien agreement from their lawyers (deadline May 2014) to be signed and notarized by the owners. I did not sign the lien agreement and did not send it to the lawyers but paid $350 for the lien fee. HOA is not sending me the details of my loan and interest until I sign the lien. Do you think if I have to sign the agreement before knowing the details and how should I follow up? Can they push me to involuntary agreement? Suggestions?
1 ANSWER
Get this resolved. HOAs have very strong powers to assess fines, enforce them, add the attorney fees they incur to what you owe, and enforce it all by foreclosing on your home and selling it.
I'm not sure what you mean by a lien agreement which does not state the details of the agreement. I suggest you ask an attorney to look at the agreement and answer your questions. You should be able to find someone to do it for $300-$500.
If you appreciate this free advice, please remember to refer me to any friends or acquaintances who need a lawyer. Referrals are still our best source of new business.
Do you have a revocable living trust to protect your heirs against probate? Probate takes forever, is expensive, and is annoying. Do your family a favor. Set up a trust, and put all your property, especially any real property, into the trust. Since it is revocable, you can change it, add to it, take property out of it, or even cancel it completely, at any time. We set up such trusts, provide a pour-over will as a back-up for any property that does not make it into the trust, provide you with blank durable powers of attorney for health care and financial decisions, in case you become incapable of making such decisions while still alive, and convey one piece of real property to the trust, usually the family home, for $1500.00. If you would like to hire me to do this, let me know, and I'll send you a list of the information I need.
Dana Sack
Answered on Oct 01st, 2015 at 5:12 PM