HOA Tried To Auction Home For 1% of Its Value, Says Blind Homeowner

A homeowners association recently attempted to auction a home worth $1.1 million for just $10,000. This is only one of the cases in Colorado wherein an HOA sold, or tried to sell, a home for a fraction of its value.

HOA Almost Auctions Home of Blind Resident

Terry Balmer is a 61-year-old, legally blind homeowner from Superior, Colorado. Recently, Balmer discovered that her HOA planned to auction off her home, which she shares with her husband.

The foreclosure almost took place in the summer. Balmer’s HOA attempted to sell her $1.1 million home for only $10,000 — 1% of its market value. Balmer and her husband would have lost their home if she had not stopped the sale in time.

Balmer discovered the foreclosure proceedings thanks to a live-in aide who read a sheriff’s notification aloud. The HOA notified Balmer through notices and legal documents. However, she cannot read her mail due to her visual impairment.

All of this went down amid her husband’s ongoing cancer treatment.

Money was not the issue, as she “could well afford to pay” her bills. However, she had difficulty finding out the foreclosure details and how to settle her debt with the HOA.

Not a Rare Case

This is not the first time an HOA has attempted to auction a home at a foreclosure sale. A previous investigation by The Colorado Sun revealed that hundreds of homes were auctioned by HOAs for a fraction of their value since 2018.

It is not uncommon for a homeowners association to foreclose on a home. Owners who purchase a property within an HOA must pay regular dues. When an owner defaults on payments, the HOA must notify the owner three times.

If an owner still does not settle their debt, the HOA can appeal to a court for a lien. Should the debt grow to 6 months (or more) worth of unpaid dues, the HOA can proceed with judicial foreclosure. This is when a judge may rule to sell the home to satisfy the outstanding debt.

Finally, the county sheriff’s office will auction off the property.