WY: HOA seeks to foreclose on $7.5M land for $100K

By Deborah Goonan, Independent American Communities

 

How much power do Homeowners’ Associations (HOAs) claim to wield over its member’s property rights?

Well, in Wyoming, landowner Jackson Hole Land and Cattle allegedly owes $100,000 in association dues payable over the past year. The Springcreek HOA has filed a lien on these properties, and is seeking in court to foreclose on land worth over $7 million!

The power of the HOA lien and foreclosure affects not just individual homeowners, but also big-time land owners and corporate property owners.

There’s no law in any state that sets a minimum floor for HOA foreclosure. That means an Association can move to foreclose over as little as 1 or 2 percent of the value of a member’s property.

 

Suit could bring foreclosure on $7 million of land

www.jhnewsandguide.com/jackson_hole_daily/local/suit-could-bring-foreclosure-on-million-of-land/article_6ad5c025-6e91-594f-b403-8c558298ce67.html

Note that, depending on the state and the nature of the deed, your HOA can proceed with a non-judicial HOA foreclosure, meaning that there is no court review prior to the foreclosure auction. Check out this legal summary.

www.nolo.com/legal-encyclopedia/chart-judicial-v-nonjudicial-foreclosures.html

Wyoming is one state that predominantly secures a mortgage or Association-Governed Community assessment obligation a deed of trust that includes a “power of sale” clause. The language in the deed allows the trustee to sell your property without a prior court hearing. For further explanation, see this link:

www.nolo.com/legal-encyclopedia/what-is-power-sale-foreclosure.html

In this particular case, it appears Jackson Hole Land and Cattle’s deed does not allow for non-judicial foreclosure, an exception in the state of Wyoming.

 

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