State Senate passes bill to stop active military foreclosures by HOAs

The state Senate has now approved a bill that would prevent homeowners associations from foreclosing on active members of the military.

Existing federal law says that a foreclosure can't be carried out on an active service member without a court order.

In order to make sure HOAs know who is in the military, the bill requires that HOAs ask if homeowners or their spouses are in the military. Homeowners then need to provide written notice to the HOA.

An identical bill has also been brought before the House, and is currently in committee. If it passes, it would go into effect on September 1.

The issue gained national attention last year, when a homeowners association near Dallas foreclosed on the home of a soldier serving in Iraq. His wife had failed to open any of the warning letters from the HOA, and didn't know the home had been auctioned off until the new owner showed up. They later sued and got their home back.

Courtesy of 2M Realty News