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HOA Industry Connections

What are the HOA Foreclosures - Mortgage Company - Insurance Company - HOA Lawyer connections?

We think this is an important question that needs to be answered since most mortgages include a "PUD Rider" or a legal rider of a type that requires and supports mandatory "Homeowner Associations" and the need for mandatory insurance coverages.

Based upon an HOA Foreclosure case that occurred in our "PUD" (Planned Unit Development) subdivision, the "homeowner" had to refinance his mortgage in order to pay the costs and legal fees incurred when the HOA filed a foreclosure lawsuit against him, obtained a judgement and set a date for the HOA foreclosure sale, in order to avoid losing his home which he sold soon after the HOA foreclosure process was over. Maybe we should include "Realtor" commissions too in the HOA schemes.

It seems that this was an advantageous situation for all involved with the exception of the mandatory HOA "homeowner," as well as a superb environment for collusion. Why do the mortgage companies include these "PUD Riders" in almost every mortgage? This must in some way benefit them and the "Developers" of these subdivisions.

The opportunities for collusion in mandatory HOA schemes are mind-boggling. Think about the possible collusion between the HOAs and the C.A.I. lawyers, the mortgage companies, the mortgage refinancing companies and banks, along with the mandatory insurance policies (with ever rising rates), and last but not least, the HOA management companies with their attendant "PCAMs, LCAMS, CAMS," and the HOA industry vendors on the lowest level of this multi-level marketing scheme. Wall Street calls processes like these "churning."

Are we being "churned" and defrauded bigtime or what? Do our state legislators care or benefit in some way? Can anything be done on the Federal level?