Posted on 06/02/2010 8:04:52 PM PDT by RDTF
Michael Clauer is a captain in the Army Reserve who commanded over 100 soldiers in Iraq. But while he was fighting for his country, a different kind of battle was brewing on the home front. Last September, Michael returned to Frisco, Texas, to find that his homeowners' association had foreclosed on his $300,000 house—and sold it for $3,500. This story illustrates the type of legal quagmire that can get out of hand while soldiers are serving abroad and their families are dealing with the stress of their deployment. And fixing the mess isn't easy.
Michael went on active duty in February 2008 and was sent to Iraq. After he shipped out, his wife May slipped into a deep depression, according to court documents. "A lot of people say that the deployment is more stressful on the spouse than the actual person who's being deployed," Michael, 37, says in an interview with Mother Jones. May Clauer had two kids to take care of—a ten-year-old and a one-year-old with a serious seizure-related disorder. In addition, she was worried sick about her husband. Michael's company was doing convoy security in Iraq—an extremely dangerous job. "It was a pretty tough year for the whole company," he says. "We had IEDs, rocket attacks and mortar attacks, and a few soldiers that were hurt pretty bad and had to be airlifted back to the States."
Seeking to avoid hearing about the situation in Iraq, May stopped watching the news. She rarely answered the door, and Michael says he couldn't tell her when he went "outside the wire"—off-base. May also stopped opening the mail. "I guess she was scared that she would hear bad news," says Michael. That was why she missed multiple notices from the Heritage Lakes Homeowners Association informing her that the family owed $800 in dues—and then subsequent notices stating that the HOA was preparing to foreclose on the debt and seize the home. .Advertisement Advertisement In Texas, homeowners' associations can foreclose on homes without a court order, no matter the size of the debt. In May 2008, the HOA sold the Clauers' home for a pittance—$3,500—although its appraisal value was $300,000, according to court documents. The buyer then resold the house to a third person. (Select Management Co., the company that manages Heritage Lakes, declined to comment for this story.)
It wasn't until June 2009 that May realized what had happened. Around that time, the new owner started demanding rent from the Clauers. She told Michael, who was still in Iraq. "At first I didn't believe it," he says. "I didn't understand how someone can take your house and not give you anything for it." When Texas Gov. Rick Perry visited Iraq in July, Michael says he told him about the problem. According to Michael, Perry called May and put lawyers in touch with the Clauers' attorney, but couldn't do much to alleviate the situation. (Perry's office didn't respond to calls seeking comment.) In August 2009, the new owner sent the couple an eviction notice, according to court records filed in the case. In Iraq, "the stress level was finally starting to come down," says Michael, and he was "starting to see the light at the end of the tunnel." He adds, "Then all of a sudden I get hit with this, and I'm trying to get out of there and get home and see what I can do to fight this."
At no point did anyone from the HOA—which is, after all, composed of the Clauers' neighbors—appear to have tried to visit May Clauer's house to talk to her about the problem. "The HOA board members...don't live very far from me at all," Michael Clauer says. There were "neighbors owing much more than us [who] were notified in person of pending foreclosures, but my wife only received a few letters." David Schechter of the Dallas/Fort Worth television station WFAA, which first reported this story, notes that the "Clauers' HOA says homeowners are free to call them, but they do not call or visit homeowners when there's a problem. They're only required to send a certified letter."
There are a bevy of laws that are supposed to protect servicemembers from losing their homes or jobs while they're on active duty, including the Servicemembers Civil Relief Act (SCRA). The homeowners' association's lawyer filed an affidavit wrongly claiming that neither of the Clauers was on active duty, says Barbara Hale, the couple's lawyer. Hale is seeking to have the court reverse the foreclosure and declare it "null and void," she says.
In the meantime, the Clauers have obtained an agreement allowing the family to stay in the home, Hale says. She's "confident that the courts will sort this out and do the right thing," but notes that the drawn-out legal process must be stressful for the Clauers.
The one good thing for the Clauers about Michael's deployment to Iraq was that it gave them a chance to get their finances in order. Michael got a bonus and expenses at home were lower. Now all of that money is gone, says Michael, who is currently working as a production supervisor at a roofing company. "It's ridiculous how much this is costing us," he says. "I'll be taking out a mortgage on my house that was free and clear just to try to get my house back."
Lauren Bean, a spokeswoman for Clauers' congressman, GOP Rep. Michael Burgess, says that Burgess is "aware of Capt. Clauer's issue," but says it is "office policy to not comment on constituent casework."
Even if he can't get his family's home back, Michael hopes that the public will pay attention to his story and push for changes to the laws that give Texas HOAs so much power. "We don't want to see this happen to other people," he says.
UPDATE: Several people have emailed asking how they can help. The Clauers have set up a legal defense fund to help pay for their court battle. You can send checks (made out to Clauer Legal Defense Fund) here:
Clauer Legal Defense Fund
c/o Plains Capital Bank
1629 Hebron Parkway West
Carrollton, TX 75010
That is the best damn story ever.....if I were your neighbor I would have helped you decorate the holes in your drive way with things like....plastic pink flamingos or an old toilet used as a planter....
it would have been fun......
Yep, I smell some real dirt bags involved here.
As for the wife not handling business, if she is a depressant that is easily understood. Lots of depressants in their youth don’t understand the disease and are given to make bad judgments, lose their ability to cope when not treated, and turn to avoidance. And I can even understand her not wishing to share problems with a husband frequently involved in mortal combat.
As for the HOA, and their claiming the husband was not in combat at the time when he was, that gets into the dirt bag time, as the HOA had to know he was military, and most likely took advantage. Especially on a house that was free and clear and where there was no bank mortgage claim against the house a new owner would have to deal with. What an easy $296,500’s to be made.
They knew apparently the wife’s inability to cope, so they’d just hold the property and claim rent for awhile until she falls flat on her face trying to deal with it. Then evict them, and voila...a nice resale profit.
You’d have paid your bill. Nice primping, though.
Agreed...someone made a lot of $$, especially over $800 due in HOA fees.
The problem is, with no HOA around here, you wind up with washing machines in various states of disrepair on front lawn display. HOA’s (with a good charter) are like governments; if you don’t like them, vote them out; many can be recalled on very short notice.
Nonetheless, I hope the board of the HOA is aware (or is made acutely aware) that there is no more evil, cunning, and vicious enemy than a “bad” neighbor - bad defined here as “someone who really has developed a genuine dislike for you”. Fortunately, this has never happened to me but I have heard horror stories with situations so bad that people have had to move.
I would have a severe dislike for someone who approved of this action, and I can’t believe that I would be alone.
I have had panic attacks for almost 30 years I spent 6 months unable to leave my home I know all too well in which you speak
May Neighbor painted them construction orange for me, that orange was so bright, I think the space shuttle could see it.
That’s true, paid my dues. But they had other ways to make my life hell so I gave it back to them 2x.
I have a nasty temper and a devious mind.
Under ‘Servicemembers Civil Relief Act’ somebody should be seeing a year behind bars - Oh, that’s right - Chicago laws only protect the crooks... 0 needs to GO!
The editor at Mother Jones must have had to pry this out of the typewriter...a story supportive of a {gasp!} soldier.
I agree and If I bought a $3000000. house for $3500. I wouldn’t let them stay, I would be selling. Something stinks here besides the wife being lacks....
I find this article somewhat suspect and very surprising.
The Servicemembers Civil Relief Act of 2003 provides that an service member can stay a foreclosure proceeding during his active duty. And may even stop non judicial foreclosure as in this case.
Many of the answers to questions (and idiotic statements) are at this thread.
I think this story is a little bunko, but if it happened to me and I were the serviceman there would be some homeowners association peckerheaded officials peeing their pants as they tried to very rapidly make amends for this as I glared at them up front and personal.
The same HOA law is used for condo's, where there really is a need for this kind of power.
In a condo, association dues aren't just for maintaining the community pool. They are also used to pay for shared utilities, like water, and even cable TV (it's cheaper when you buy service for everyone from the cable company). I've also seen condo buildings that share hot water generation, and that hot water may be used for heat in the winter.
Condo association fees are also used for exterior maintenance: painting, repair, etc. of ALL of the buildings. So, it can easily be $100's per month, and will add up quickly. If even a few owners don't pay, it puts the association in a cash flow bind, and the rest of the owners have to make up the difference.
So why paint individual single family home owners with the same brush? This is not analagous to the condo situation.
I agree. But, the original poster asked why, and that's why.
There has been a lot of discussion about changing the law. I don't believe the answer is to just prohibit foreclosure -- a condo homeowner could just refuse to pay association dues and the association could only put a lien on the home. The lien couldn't be collected until the home is sold, and if the owner doesn't move for a long time, the association (and all the other owners) would be screwed.
I'll suggest that foreclosure is only allowed if association dues exceed some threshold -- either an absolute amount or a percentage of the assessed value of the home.
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