Dozens of former owners sue their condo association over fraudulent foreclosures (TX)
At least 30 current and former owners of units in Sugar Branch Condominium Association are suing the condo association in state district court.
They say their condo board is engaging in a conspiracy to force vulnerable owners out of their homes through fraudulent use of the power to impose special assessments and fines, that owners cannot afford to pay. That, in turn, leads to liens and nonjudicial foreclosures.
Dozens of owners have already lost their homes, others are at risk.
The plaintiffs further allege that the board members behind the scheme are buying up condo units at auction, for below-market prices. A majority of board members already controls about half of the 180 units in the condo association,
Legal expert David Kahne points out that in Texas, some legal protections exist for owners of single family homes in planned communities governed by HOAs. But none of those state legal protections apply to condominium associations.
Source:
Houston condo owners sued their HOA board after foreclosures, a big assessment and other issues. But state law gives them few options.
Houston Chronicle | Olivia P. Tallet | Aug. 9, 2019 Updated: Aug. 10, 2019 5:10 p.m.
