It's the American Dream: buying a home in a nice community. But did you know that someone other than your mortgage company has the right to take that home away from you? Your homeowner's association can and will foreclose on your home if you owe them money. One local family found that out the hard way. 

They can dictate the color of your home, what plants you have in your yard, even what kind of vehicle you can drive, but did you know that your homeowner's association has the power to leave you homeless? 

Robert Denson/Homeowner: "I was never aware that your homeowner's association could foreclose on you." 

But it happened to Robert Denson, his wife Theresa and their four kids. They bought this $300,000 home in the Borgata development in Boynton Beach three years ago and had about $100,000 equity in it, but two months ago, they were forced out and foreclosed on by their HOA for $1200. 

Robert Denson/Foreclosed on by his HOA: "It's the biggest nightmare of your life, you put so much into your home and lose it for pennies on the dollar." 

Suzanne Boyd: "Denson admits he owed his HOA money. He and his wife were separated and they didn't pay their dues for at least 8 months. But he says...after he and his wife got back together...he says he worked out a payment plan with his association's president to pay his dues plus $200 per month." 

But this agreement, even though Denson put it in writing, was never signed by his HOA. And despite the fact that the management company continued to cash his checks plus his extra payment, the bylaws in his community allowed the HOA to foreclose. 

Robert Denson: "Anything in the bylaws in regards to losing your home over $1200 when your home is worth $300,000 is crazy." 

But the Denson family is not alone. In fact, on a website called "cyber citizens for justice" there are some outrageous cases of associations foreclosing on homes when less than $100 is owed. 

Blane Carneal/Attorney who represents homeowners:"I was in a case where they filed a lien and the lawyers wanted to foreclose on the unit when the ultimate debt was four cents." 

Blane Carneal is Broward County's pro bono lawyer of the year in 2002 and helps homeowners fight their associations. He says your board's foreclosure power is real and it's a threat you should take seriously. 

Blane Carneal: "If you're ignorant of your association's authority of what they can do, then you're in an even more perilous position...what rights they have in respect to your own property." 

As for Denson's HOA, we went to one of their meetings, but both the manager and board members say Denson's case is out of their hands. 

Amy byers/HOA board secretary: "I didn't vote anything. The bylaws state that this can happen. Once something is delinquent, it goes to the attorneys." 

Scott Straleau/HOA manager: "You'll have to call the attorney's office. I don't have anything to do with it. I was not the manager when it was going through. Ann: So you never talked to Mr. Denson? Scott: No." 

But, in fact, Scott Straleau's company, Gulfstream Management *was* the manager when this foreclosure happened and Denson says he talked to Straleau twice before his home went up for sale and was assured his home was safe. Blane Carneal says in a situation like this, it is imperative you get everything in writing. 

Blane Carneal: "Any of those agreements should be in writing and brought to the attorney's attention immediately." 

We did talk with the HOA's attorney, Randall Roger, who says Denson ignored repeated notices to pay his dues and only responded after the threat of foreclosure was imminent. But either way, this couple and their four kids are now living in a small apartment over a $1200 debt: a debt they paid with their $300,000 home. The association's attorney did return all the money that Denson paid after the foreclosure process began. 
That check was mailed the day after we visited the HOA meeting. 

Mr. Denson has hired attorney Cathy Lively to represent him. 
If you are interested in contacting her for help or questions, please call her at (561)649-2204 

To protect yourself, experts say: 

You should pay your dues no matter what, even if you have a dispute with your HOA. Any dispute should be handled separately. 

If your HOA threatens foreclosure, you should hire an attorney immediately. 

Contact your mortgage holder. They may loan you the money to pay off your dues. 

As a last resort, you could always buy your home when it goes up for auction. 

To contact Attorney Blane Carneal, call (954) 527-0400 or [email protected]. 

If you have a problem with your HOA or Condo Association please call our Iteam hotline at (561)881-0784 or email us at [email protected] 
You can also log on to the links below for more information about HOA and Condo rules and regulations: 

Cyber Citizens For Justice, Inc.
American Homeowner's Resource Center
To contact Attorney Cathy Lively