Georgia HOA & Community Association Law Resources

Challenging a HOA Foreclosure Sale: The Cautionary Tale from Windsong Association

Challenging a HOA Foreclosure Sale: The Cautionary Tale from Windsong Association

HOA Case Law Journal with Julie McGhee Howard

C & C Investments, LP v. Hummel (Colorado) 2022 Ct. App. 42, 514 P.3d 328

Bad Facts Usually Mean Bad News

Ms. Hummel lived in Windsong HOA for fifteen years, paying her HOA monthly assessments and other bills through autodraft. She fell into a deep depression for the following eight years, never leaving her home for any reason. The post office shut off her mail for failure to retrieve mail for a number of years. Three years after Ms. Hummel’s severe depressive state began, the HOA changed management companies. This caused her autodraft payments to stop without Ms. Hummel’s noticing. Ms. Hummel then became delinquent in dues and assessments owed to the Association. Windsong HOA sent ultimately undeliverable letters to Ms. Hummel notifying her of the delinquency and demanded payment.

The Facts:

  • Windsong HOA decided to foreclose on Ms. Hummel’s lot and attempted, but failed to serve her with personal notice four times.
  • Because the personal service attempts failed, Windsong HOA was granted permission by the court to serve Ms. Hummel by publication. Ms. Hummel did not have access to the newspaper in print or online and thus did not receive actual notice of the foreclosure suit.
  • Windsong foreclosed on Ms. Hummel’s Lot, which C & C Investments purchased at the sheriff’s sale for $19,000.
  • The fair market value of Hummel’s lot was at least $250,000.
  • Notice of the sale and eviction was posted on Ms. Hummel’s front door, which she noticed and immediately called an attorney.
  • Ms. Hummel paid her overdue balance to Windsong HOA.

The Issue:

Ms. Hummel challenged the foreclosure sale and deed to C & C Investments since she never received actual notice of the foreclosure and was able to satisfy the past due amounts she owed the HOA.

Court Decision

The Court invalidated and set aside the foreclosure sale and deed, holding that the HOA’s attempts at service did not meet the threshold requirements of due process, including failing to post notice on Ms. Hummel’s lot.

The Cautionary Tale

Foreclosure is typically a remedy of last resort. Where this time may have had extenuating personal circumstances, the association would be well served to proceed only after the advice of counsel and exhausting all other remedies.

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