Texas Home Owner Associations Given Limits by State Legislation
Texas legislation has limited the control that the home owners associations have when pursuing foreclosure. The restrictions that have been placed on home owners associations are aimed to help assist homeowners that are delinquent on their specific payments. The provisions enclosed within the legislation help the homeowners that are down on their luck in multiple ways.
1.) In order for a HOA to foreclose on a house they need a court order
2.) The foreclosure on a person’s home cannot commence until 60 days have lapsed after written notification
3.) The debt due can also be repaid by an alternate payment plan
The ability of the HOA to foreclose on an individual’s house is no longer absolute. New legislation provides for the HOA to lose its ability to foreclose on individual properties if 67% of the homeowners decide to rid this right of foreclosure from HOA power. All of these new stipulations have been ushered in to protect people from abuse by their own HOA. HOA is now more restricted in power and use of such power.
The HOA must maintain policies that require documentation of mortgages and outstanding payments. If the HOA has no policies instituted for document retention they cannot charge homeowners for the cost of retrieving the documentation individually. The HOA must allow for an annual meeting as well. If a demand for a meeting is not upheld by the HOA then a re-election of the board members can be initiated. The voting aspect of HOA has been revised as well. A homeowner may vote in proxy, by absentee ballot, or by an electronic ballet, however all ballets must be in writing and signed.
All of these rules have been implemented to help protect homeowners from HOA wrongful oppression. Foreclosures have been epidemic in Texas with HOA’s foreclosing on people’s properties without any or with inadequate warning for individuals to respond and protect themselves. These new laws help level the playing field and give homeowners’ safeguards against the wrongful whims or abuse of power of the HOA.