Found out my HOA is caught up in a fraud lawsuit.

[neurosis]

I've been trying to get a hold of anyone from my HOA for the last few weeks and found out that the only person responding to my emails or phone calls was the company CEO.  I thought that was a little weird so started doing some searching around and found a PSBJ article alleging that my HOA is caught up in a fraud case. 

Apparently the CEO is also the owner of an Insurance company and has been convincing the associations to purchase insurance through that company without telling them that it's owned by the same people. They've been overcharging for insurance and pocketing the extra money. 

I don't know yet if our Condo's use that particular insurance company. I think their license has been pulled?

This makes me want to sell the condo and get out while the getting is good.  . 


Seattle-area condo associations accuse CRE executive of fraud

https://archive.ph/Jgnwz

[gcode]

I don't know yet if our Condo's use that particular insurance company. I think their license has been pulled?

I'm wondering if your complex actually has insurance now?

[neurosis]

I'm wondering if your complex actually has insurance now?

They do.  I only say that because our insurance rates went up this year and it caused out HOA fees to go up.

The insurance went up quite a bit but I read that's been the case everywhere.

I'd ask my board or the management company but I can't get anyone to respond to me right now.

[mkd]

create a facebook group and post leaflets on everyone's door. It's an elected position, right?

[gcode]

create a facebook group and post leaflets on everyone's door. It's an elected position, right?

you DO NOT want to be on an HOA board of directors
It is a miserable, thankless and sometimes even dangerous task.
I did that for 15 years and as the neighborhood went south, it got harder and more dangerous.

There were a group of relators telling immigrants and non English speakers that the home owners
association dues were a gringo scam and they didn't have to pay it
6 or 7 months into their new home owners experience they were having their condos seized for non payment
and occasionally things got really ugly.
Most were convinced they had to pay it, but some actually lost their homes, refusing to pay to the bitter end.

then there were the pool parties..
I will never ever do that again.

[YoDoug]

Effing commie leftist gov in Seattle. That CEO is just practicing free market business. If they don't want to pay his higher rates they need to find a new insurer. Caveat Emptor!

[neurosis]

create a facebook group and post leaflets on everyone's door. It's an elected position, right?

It's very difficult to get on the board here.  Most people don't attend the meetings and when there is a vote, they just pick one of the current members to proxy vote for them so they always choose their friends.

There is a lot of secrecy here and it's really difficult to pry information out of anyone.

[Incogneeto]

It's a BIG  club and you aint in it.



Just watch it. Neuro.

[Incogneeto]

P.S.

You need to trim your Bush!!

Article 5 HOA bush limits.

[mkd]

Effing commie leftist gov in Seattle. That CEO is just practicing free corrupt business. If they don't want to pay his higher rates they need to find a new insurer. Caveat Emptor!

fissed for the commies  

[YoDoug]

fissed for the commies  

So that is corrupt business but big corps buying all the houses in a geographic area so they can set prices is just free market business?

[beej]

So that is corrupt business but big corps buying all the houses in a geographic area so they can set prices is just free market business?

There is no such thing as an "uncorrupt" business market. You can look at the US, China, Russia, Ukraine, Brazil,
Argentina, Italy, France, where ever, they all have corruption in their various economic systems. The difference between Capitalism and other forms of economics is that you have a choice to go buy your goods from somewhere else once you spot corruption.

 Capitalism has built in corrections for corruption. These companies that are buying homes for prices that are above a natural market price, will eventually lose their shirts, go bankrupt, and then their will be a flood of homes on the market at cheap prices.  I don't know for sure if what you are describing is actually happening (big business buying all the houses) I've heard people say that's the problem, but on the other hand, we are getting 6 million new migrants per year in this country, that has to be driving up housing costs in one way or another.

 I don't really think that big business wants to mess with single family dwellings all that much. That's not really the model that most big corporations follow. Just look at what Trump's business model looks like as an example. They usually want multi-family, big complexes, with managers for each complex to simplify the day to day aspects of maintenance and other things.

[neurosis]

I don't really think that big business wants to mess with single family dwellings all that much.

Investors Bought 26% of the Country's Most Affordable Homes in the Fourth Quarter—the Highest Share on Record

[YoDoug]

Capitalism has built in corrections for corruption. These companies that are buying homes for prices that are above a natural market price, will eventually lose their shirts, go bankrupt, and then their will be a flood of homes on the market at cheap prices.  I don't know for sure if what you are describing is actually happening (big business buying all the houses) I've heard people say that's the problem, but on the other hand, we are getting 6 million new migrants per year in this country, that has to be driving up housing costs in one way or another.

Always with the blanket defense of capitalism. Can't ever admit anything bad can happen if you want to be a good R. Must pledge undying fealty to the free market gods.

There is a whole lot of in between ground in your "built in corrections". CEO's and execs drive companies into the ground all the while getting their huge bonuses and golden parachutes. They know it and they know it will hurt employees, customers, and investors, but they do it any way. Small businesses overcharge and provide crappy service/products to maximize their profit. Then when the business starts to lose income, they shut it down and take all the money they made and move on to the next business venture. meanwhile their employees and customers are left high and dry. If the reward for "corrupt" business practices outweighs the natural "built in corrections", then are they really corrections. The people driving the corruption very seldom feel that correction. It's always someone else taking the haircut.

[beej]

Investors Bought 26% of the Country's Most Affordable Homes in the Fourth Quarter—the Highest Share on Record

I think that article is correct, in that investors are buying homes. But my question would be, how big are those investors. I would wager they are not what most people would refer to as big business. My son, has bought a few investment properties. He wants passive income to supplement the income from his day job. I have a friend who is a retired policeman who has bought a dozen homes or so, that helped him retire early. Some other friends of mine who are retired teachers have used the equity in their home to buy some flip houses and sell them. None of them are "big business"