SOUTH CAROLINA – Fort Mill HOA among those named in federal lawsuit over foreclosures

wsoctv.com:  Fort Mill HOA among those named in federal lawsuit over foreclosures
By: Greg Suskin
January 11, 2018

FORT MILL, S.C. – The Cole Creek Homeowner’s Association in Fort Mill is one of five in South Carolina that’s now the target of a federal lawsuit.

The HOA is being sued after foreclosing on a home because the homeowner didn’t pay dues. Lawyers for the plaintiffs claim in the suit that HOAs don’t have that power. The result of the lawsuit could have an impact across the state concerning the legal authority of HOAs.

Brian Gambrell, the lawyer from Columbia who represents the families suing, talked to Channel 9 on Thursday.

“It’s only been the law in the state since the founding of it, that you can’t do a foreclosure that’s not a mortgage,” Gambrell said.

The lawsuit, filed in Charleston Tuesday, seeks to show that even though a homeowner agrees to abide by neighborhood covenants when buying a home, state law doesn’t give a nonprofit corporation such as an HOA the power to take out a lien over unpaid dues or assessments, and doesn’t allow foreclosures either.

However, Gambrell said that’s what’s happening around the state. The suit also names several law firms as defendants, as well as property management companies. Gambrell said homeowners are being evicted, yet still must pay their mortgage.  Read more:

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