HOA Horror Stories: Georgia Homeowners Share Nightmarish Ordeals with HOAs

Georgia residents who have faced foreclosure proceedings and lost their homes to homeowners associations share their frustrating conflicts stemming from what they describe as an abuse of power.

Nearly one in five Georgians live in neighborhoods governed by community associations, known as homeowners associations (HOAs). These associations are responsible for enforcing rules and regulations, maintaining common areas, and collecting fees from homeowners. However, some homeowners have found themselves entangled in nightmarish legal battles with their HOAs, resulting in foreclosure proceedings and even the loss of their homes.

Karyn Gibbons, a Gwinnett County homeowner, nearly lost her condominium last year after her HOA sporadically cashed her dues payments and initiated foreclosure proceedings against her. Despite repeatedly sending checks to the HOA's designated address, most of them were returned, leaving Gibbons unaware of her delinquent payments.

HOA Horror Stories: Georgia Homeowners Share Nightmarish Ordeals with HOAs

"It was just very strange. We never got any phone calls, emails, text messages, not even a letter in the mail saying, you know, you're late on your payments or anything," Gibbons said. "No one contacted us whatsoever."

When Gibbons was finally served with a notice of foreclosure, she retained an attorney. However, she encountered further obstacles as the HOA's representatives took weeks to respond to her lawyer's inquiries and tacked on thousands of dollars in legal fees for each response.

HOA Horror Stories: Georgia Homeowners Share Nightmarish Ordeals with HOAs

"It felt like a real scam," Gibbons said. "It just seemed like they just wanted to keep adding more and more and more to what we owed and not resolve anything."

Gibbons ultimately paid $34,000 in interest, fines, and attorney fees to end the ordeal, despite the initial unpaid dues amounting to only $7,000.

HOA Horror Stories: Georgia Homeowners Share Nightmarish Ordeals with HOAs

Another Georgia resident, Tricia Quigley, experienced an even more severe consequence. She purchased a home in Cherokee County in 2001 but became frustrated with the biannual dues payments of $800 per year. Quigley repeatedly received second notices with late fees, despite calling the HOA to address the issue.

In 2010, Quigley decided to withhold payment, an action she later admitted was unwise. Soon after, she received letters from a debt collection agency, and the HOA later filed a lien against her home.

HOA Horror Stories: Georgia Homeowners Share Nightmarish Ordeals with HOAs

Quigley attempted to pay off the debt and even hired a bankruptcy attorney, believing she had resolved the issue. However, unbeknownst to her, her HOA had purchased her house at auction for $3.24 in 2017. Several years later, Quigley received an eviction notice, discovering that she had lost her home to the HOA.

Quigley's case raised concerns about conflicts of interest, as the HOA board members and individuals involved in the foreclosure process later profited from the sale of her house. Georgia law does not prohibit such actions, leaving homeowners vulnerable to potential improprieties.

HOA Horror Stories: Georgia Homeowners Share Nightmarish Ordeals with HOAs

Julie Howard, an Atlanta-based attorney who represents HOAs and condominium associations, stated that it is "just not possible" for a foreclosure to occur without proper notice to the homeowner. She explained that homeowners are typically served with a lawsuit, receive notices of a judgment, and have an opportunity to contest any fines before a foreclosure is finalized.

Homeowners Gibbons and Quigley countered these claims, stating that they did not receive adequate notice or clear communication from their respective HOAs. They also expressed concerns about the excessive fees and confusing rules and regulations, which they believe can lead to misunderstandings and unfair treatment.

HOA Horror Stories: Georgia Homeowners Share Nightmarish Ordeals with HOAs

Experts emphasize the need for more concise and readable HOA bylaws to prevent confusion and ensure that homeowners understand their obligations. They also advise homeowners to carefully review their HOA documents, ask questions, and seek legal advice if they have any doubts or concerns about their responsibilities.