My first error this year was thinking that an HOA CCR violation or back assessments would ‘go with the property’. That is incorrect, trumped by both by our own CCR’s (6.8.3) and the Arizona Revised Statutes. 33-1807_B_2 & 3 which puts the first mortgage holder plus any taxes owed in ‘first’ position. An opinion from our HOA attorney confirmed this. (Thanks to HOA member Lois Bloom for nudging me in the correct direction.)
Assessments & CCR violations that generated a penalty would be wiped clean if / when the bank forecloses and we would need to file suit against the property owner, which in the case of these two lots (02, 12) would likely not be recoverable even after expending up-front attorney fees. (The homes are going back to the bank for a reason.)
Lot 02 is the 2nd home in our neighborhood, 8710 S. Palisades Dr, and in bad need of landscaping maintenance as I’m sure all have noticed. At the recent board meeting, the board authorized an expenditure not to exceed $2,500.00 for cleanup which, at the time was thought to be eventually recoverable.
Lot 12 is at 5838 E. Hickory Court, and the bank is scheduled for the trustee’s sale on June 10. This property maintenance should not be an issue if the sale takes place prior to the monsoon season. However the violations and the uncollected yearly assessments will likely go uncollected.
So here is what I’m looking for feedback on:
- Do we allocate an amount not to exceed $750.00 to dress up just the ‘front’ of Lot 02 with the thought that it will not be recovered?
a. Depending upon the time frame before the bank will eventually foreclose we may be on the hook for some additional cleanup.
b. Once the bank takes possession we have hooks into them to maintain per the CCR’s or pay the HOA to perform these duties at their expense.
- Do we look the other way when we or guests or potential purchasers drive past?
- Do we have a willing group of volunteers that would want to adopt this project?
We can convene a special board meeting with 25% of the members requesting same, per our bylaws.
Or, you can reply to anyone on the board your thoughts which we will take into account.
This is not a good situation and I apologize in advance for any potential anguish this may create.
Lynn Mattingly, President
vdohoapresident at vistadeloro dot org