My community HOA was granted its motion to foreclose on my property. However, this whole mess started with fraudulently calculated late fees and other penalties that where added to rapidly balloon the amount they claim is owed; for example, they're charging me 18% interest not only on past monthly dues, but on the late fees and legal fees. In other words, fees on fees, etc.
It isn't hard to see how a mere $2,000 was fraudulently inflated to $40,000 over a few months while I disputed the amount. I continued to pay my dues in good faith, but they refuse to be fair and accept what is really owed; the amount keeps growing every day.
Is it possible to file a lawsuit that would stay the foreclosure while their bookkeeping is audited and the correct amount proven to the court? Thanks.
I am going to assume that a motion for summary judgment was granted giving the HOA a foreclosure judgment.
Your problem is that your day in court has already occurred. A rule of law is that any defense or claim that you had relating to the claim of the HOA, must be raised in the lawsuit or it is waived. If you did not raise this accounting defense properly and then prove up their mistake (merely saying there is a mistake is not enough), then your opportunity to raise it is now gone.
You may have time for a rehearing - or if you did properly raise the defense then maybe the opportunity for an appeal.
But to see if there is anything salvageable you must see an attorney immediately.
As a last resort you can pay the judgment (in the alleged inflated amount) and then work with them to adjust the account. If they don't and you can prove you are right from both an accounting and legal standpoint, then you can sue them for the improper billing based on the inaccurate accounting they give you. However in this later suit, the attorney fees and costs in this lawsuit may not be recoverable.
If you have a defense to the amount due, then you should raise it in the foreclosure action. It may too late to do that, but it depends on what stage you are at in the foreclosure. Alternatively, there is usually a way to save your home in a bankruptcy, by spreading out the amount due the HOA over 5 years. If you have other debt, you may be able to discharge that in the bankruptcy.
Paul John ScanzianiForeclosure AttorneyMiami, FLFL licensed ·
The HOAs have been give an incredible amount of power to do anything they want. You need to get an attorney, see what Judge this is assigned to, and move for rehearing or appeal of time permits.
Did you hire a lawyer to represent you? If not, then it might be too late to defend your foreclosure. But maybe you should contact a bankruptcy attorney in order to file a Chapter 13 bankruptcy and dispute these fees in Bankruptcy Court.
You cannot stop the foreclosure now, it sounds like it is way too late. Your day in court came and went, and that was your time to present you arguments and evidence.
You need to review your HOA guidelines, they may very well say that the HOA can charge you interest on late and legal fees; this is not uncommon. You agreed to this when you moved in and received a copy of the rules.
Your only chance to stop a sale of the property may be to file foreclosure or to pay off the judgment amount.
