Another Missouri City Neighborhood Plagued by HOA Foreclosure Attorneys (Vote No On TUPCA)-

Many of you remember the SLAPP-suit filed by Johnson Development against Sienna homeowners last year and the HOA controversy in Silver Lake with homeowners at http://www.bizjournals.com/houston/stories/2005/04/25/story8.html and the list of HOA foreclosure filings at http://pages.prodigy.net/hoadata/ and the push by this attorneys lobby (TCREA & CAI) to get legislation through to increase their authority over individual homeowners through foreclosure and other measures (see TUPCA review). Well see this related piece in yet another nearby Missouri City neighborhood from the FB Star and then get on the petition drive to stop this abuse by clicking the title link above:

Letter Featured in the FB Star: Meadow Creek resident discusses HOA problems

Dear Beverly...

First, let me applaud the Star for its coverage of this community event (Meadow Creek residents at odds - Star 10/11/06). I have always contended that information and education are the most important factors when seeking reform and change.

I think that the term “community reformists” (favoring or promoting reform, often by government action) might better apply to those in Meadowcreek who took the time to sign both the original petition and proxies calling for the removal of the present board of Meadowcreek Association, Inc. Simply put, many Meadowcreek homeowners are in dispute with the policies and actions of the board, and are advocating change. I don’t think that any informed individual feels that certain board actions are either warranted or in many cases acceptable. I haven’t had the opportunity to observe any of the petitioners in a state of “sulky dissatisfaction”. Madder than the proverbial wet hen yes - sulky no.

I have taken the time to search through hundreds of public records... In my opinion, the methods presently employed are completely unconscionable. Using The Holoway Jones Law Firm, P.L.L.C. as its agent, the association has in 2006 alone filed over thirty Lis Pendens (Latin for “suit pending”) with the courts... It also places the homeowner in a position that requires a choice; they retain legal representation and fight the issue, or accept a “deal” with the law firm to make the problem go away. Ms. Fulenwider indicated in her article that Chip Smith made reference to this when interviewed. Regretfully, the details of these “deals” are not a part of public record, and the full extent or value of these out of court settlements may never be known.

The Meadowcreek Association Inc. indicates that the agreement with Holoway Jones regarding the collection of late assessments are covered under a contingency arrangement, and that the Association receives only the amount of the original assessment plus a ten percent late fee when recovery is made. By the way, the covenants indicate that the ten percent fee is per annum - not all up front. I have discovered, however, that this might not in all cases be the absolute truth.

In cause number 92,628, it appears that Meadowcreek Association Inc., was not only the plaintiff in the lawsuit to foreclose on a home, but in fact was a bidder when the property went to auction, and ultimately purchased the property at the Constables sale for the sum of One Thousand Five Hundred Fifty Six dollars and ten cents ($1556.10). A Constable’s Deed was recorded showing said Meadowcreek Association, Inc., as the owner of the estate, right, title and interest formally owned by the defendants Donald J. and Terrie Wilchek.

This raises the question of conflict of interest. If the Association is only attempting to collect the annual assessment, plus any applicable late fees, what are they doing bidding on the property when it goes up for auction? This question demands an answer. I have never seen a line item in the Meadowcreek Association budget that shows either the debit (expense) for purchasing the property, the actual equity value that the Association holds as an asset, or the credit (income) for profits made from the sale of the property.

The problem goes back many years according to public records. A search of the Fort Bend County Clerks records for Lis Pendens filed on behalf of the Meadowcreek Association brings up 288 records.

The fee was simply the catalyst that brought the activities and methods used by the Board to the attention of many homeowners. I personally questioned the fee... I was advised by both phone and e-mail that the fee was “voluntary”, and that if I did not pay same my family would not be able to use certain community facilities (e.g. pool, tennis courts, and clubhouse). The statement received for 2006 showed a “Balance Forward” of $160.00 (2 x $80). On September 13th, 2006, my account showed an outstanding balance of $240.00 ($80 x 3 - previous year user fees). It took the recent actions of dedicated individuals to correct this issue.

On September 18th, 2006 the Board showed an “EXP ADJUST” on my account for the $240.00, bringing my account to “$0”. About time - I guess that they finally determined that they were wrong. I make an assumption here that my wife and I are once again good citizens and neighbors, and can enjoy all the freedoms and benefits thereof. I’m not absolutely sure that the board had the right to deny my family the use of any community facilities, as my annual assessments have always been paid.

I’m personally very appreciative of the efforts of many of my neighbors. They are taking the time, personally bearing the expense, and making a strong effort to right what they feel to be wrongful actions. While the Meadowcreek Board uses many inflammatory and possibly derogatory words to describe these individuals, I can only applaud their actions. They say you are known by the company you keep, and I for one would rather be associated with those who stand up and combat injustice, rather than with those that perpetrate it.

Tommy Blankenship

Meadowcreek Resident Since 1983

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Comment: Contact your state representative today and tell them to vote NO on TUPCA (an insider industry lobby effort to reduce your rights as a homeowner). The Texas Homeowners Association, THAG, AHRC and several other homeowner groups need your help to stop HOA foreclosure abuse today! See TX Senate coverage on this at:http://missouricitychatter.blogspot.com/2006/10/listen-to-senate-hearings-on-tupca.html