Senator Kavenagh’s bill to modify ARS 33-1807 reduces the wait time for HOAs to foreclose on past due homeowners from one year to six months, but a number of people are misunderstanding what the elimination of the phrase “in the amount of one thousand two hundred dollars or more” actually means.
Caveat: I’m no lawyer, but I read English pretty darn well. Or good. Whatever!
Take a look at the second sentence of ARS 33-1807, with all the unnecessary gobbledygook trimmed out of it:
What this says is that currently (before passage of SB 1080), the association can foreclose on a homeowner under either of these two worst case scenarios:
- Scenario One: Regardless of how much the homeowner owes, the association can wait one year and — if it’s still due — foreclose for any amount. Let’s say you forgot to pay a $10 fee on January 1, 2017… they can foreclose on you now!
- Scenario Two: You somehow managed to have a huge fine levied on you just a week ago, and the balance due now is $1,200. They mailed you a notice and it’s in your mailbox, but you haven’t picked it up yet… they can foreclose on you now!
There is a modicum of good news in SB 1080: if passed as initially presented, it will remove the circumstances of Scenario Two! Unfortunately, it does so at the expense of shortening the timeframe of Scenario One from one year to six months.
I’d like to see an amendment to the bill to change “one year” to “five years”, and still take out the dollar limit clause. That’s a little more neighborly way to do business.