I don't think anyone is cheering this result (with the arguable exception of the new homeowner who basically got it for a song). But s*** happens and it wasn't the HOA's fault that the couple didn't pay their bills.
How can a $120 bill grow to nearly $2000 in only a year? What kind of "late" penalty is being applied, and at what interest rate? What did the "collection agency" do to earn their portion of $2000? Send a few letters and leave some mesages on an answering machine?
These are all questions that the couple who lost their home should be asking themselves. They should also be asking themselves how they could have let a $120 bill run unpaid for long enough to wipe out their investment. They should also be asking themselves why in the world they voluntarily signed a contract that imposed such onerous penalties upon themselves.
What kind of legal system imposes a $200,000 fine for a $120 debt? That's right, the home is worth $260,000 and the owner will net $60,000.
It wasn't a "fine," it was the result of poor planning and non-action on the part of the original homeowners. Don't want this to happen to you? Then don't sign stupid contracts.
The foreclosure sales on "the courthouse steps" are a crock. They should be sold through realtors like every other home sale.
Who are you to impose conditions on the way this particular HOA/county/taxing authority conducts business if they're doing so legally? Don't like the rules? Then don't live there.
You need to rethink your "let them eat cake additude". It's not conservative.
Its not "conservative" to advocate treating a legal, binding contract like so much toilet paper.