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(visit the link for the full news article)
Michael Clauer is a captain in the Army Reserve who commanded over 100 soldiers in Iraq. But while he was fighting for his country, a different kind of battle was brewing on the home front. Last September, Michael returned to Frisco, Texas, to find that his homeowners' association had foreclosed on his $300,000 house—and sold it for $3,500.
Originally posted by L.HAMILTON
Unbelievable !! This soldier lost his home while deployed in Iraq for an $800.00 dept. There should be laws in place that forbids forclosures or property seizures while being deployed overseas at least give military personnel a fighting chance to confront their debtors. Instead there are laws in place as in Texas where a homeowners' associations can foreclose on homes without a court order, no matter the size of the debt. Lawyers !! The epidemy of the Earth.
motherjones.com
(visit the link for the full news article)
There are a bevy of laws that are supposed to protect servicemembers from losing their homes or jobs while they're on active duty, including the Servicemembers Civil Relief Act (SCRA). The homeowners' association's lawyer filed an affidavit wrongly claiming that neither of the Clauers was on active duty, says Barbara Hale, the couple's lawyer. Hale is seeking to have the court reverse the foreclosure and declare it "null and void," she says.
Originally posted by LadySkadi
reply to post by getreadyalready
The wife - where was her support system? The Depression should have been watched closer and she should have had help... Sad story.
The Texas Homestead exemption is a legal rule which is designed to:
* Protect the value of homes from increasing property taxes
* Protect creditors from forcing a sale in certain circumstances
* Give protection for the spouse should the homeowner die
Texas Homestead Exemption allows an exemption from property tax on 20% of the house value. Additional exemptions are made for county taxes, those over the age of 65 and those registered disabled. The property must be the primary residence of the applicant. Texas Homestead Exemption has no dollar value limit but has a 10-acre limit for homesteads inside a municipality and 100-acre limit for those in a rural homestead.
Texas Homestead Exemption also prevents the forced sale of a home to meet the demands of creditors, with the exception of mortgage holders, note holders and tax authorities. Finally, it provides a surviving spouse with shelter.
Texas offers some of the most generous homestead exemption protections in the USA. Although the protection is substantial, it does limit the ability of the homeowner to mortgage the property, as a home equity loan and/or mortgage on a property with Homestead Exemption may not exceed 80% of the value of the property.
Originally posted by getreadyalready
And lastly, lastly, lol! It would have cost the association more than $800 in filing fees and attorney fees to initiate a foreclosure. Knowing that the market is down and the house would likely be sold for less than was owed, there is no way they would have initiated a foreclosure.
Originally posted by LadySkadi
reply to post by greeneyedleo
I suppose I was thinking more about family and friends and not necessarily support from the base resources.
As a side note:
Running a quick search on this story returns plenty of hits, but all seem to link back to the original Mother Jones (is that a blog?) source... so difficult to validate the exact situation and to know whether all the details have been reported correctly.
Originally posted by getreadyalready
There are such laws. I didn't read the linked article, but I don't believe this for a second. First off, why would they sell it for $3500? They could easily have gotten $200,000 or more even at fire sale prices. Second, a foreclosure takes place in court, to be valid he has to be served the notice to appear. They couldn't have served him if he was at war. If someone else was served on his behalf, then surely that someone would have told the courts that he was deployed and the whole proceeding would have been delayed.
Lastly, a young soldier doesn't make enough money to have a $300,000 home paid for. The first lien would have gone to taxes, the second to the mortgage companies, and the last one to the Home Owner's association. The first and second lien holders would not have allowed the home to be sold so cheaply.
And lastly, lastly, lol! It would have cost the association more than $800 in filing fees and attorney fees to initiate a foreclosure. Knowing that the market is down and the house would likely be sold for less than was owed, there is no way they would have initiated a foreclosure.
Originally posted by manta78
reply to post by ViewFromTheStars
Watch the video. The house was a gift from the wife's parents.
The foreclosure was over $800 in HOA dues.
And as someone who has previously dealt with the "intelligence" of HOA's and their boards, I know these kinds of things can and do happen
[edit on 28-5-2010 by manta78]
Originally posted by getreadyalready
I didn't read the linked article, but I don't believe this for a second.
Originally posted by getreadyalready
First off, why would they sell it for $3500? They could easily have gotten $200,000 or more even at fire sale prices.