Homeowners Sue HOAs Over Allegedly Unlawful Threats of Foreclosure

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Five South Carolina residents have filed suit against a group of homeowners associations (HOAs), law firms, and HOA managers over claims that the defendants have unlawfully threatened to foreclose on homes for which the owners have failed to pay HOA dues. According to the complaint, the law firm defendants file liens and foreclosure actions against residents who are delinquent on their membership payments despite knowing the foreclosure of liens filed by non-profit organizations is “not authorized” under state law. The suit argues that the defendants put “tremendous pressure” on homeowners to settle their claims by falsely threatening to take actions they cannot legally take, knowing most homeowners will not seek legal counsel to defend themselves in matters concerning such “trivial amounts of money.”

The following defendants have been named in the lawsuit:

• Preserve at Charleston Park Homeowners Association, Inc.;
• Hawthorne Ridge Homeowners’ Association, Inc.;
• Pennington Square Homeowners Association, Inc.;
• Waccamaw Village Property Owners Association, Inc.;
• Cole Creek Homeowners Association, Inc.;
• McCabe, Trotter & Beverly, P.C.;
• Simons & Dean, Attorneys At Law;
• McCutchen, Mumford, Vaught & Geddie, P.A.;
• Black, Slaughter & Black, P.A.;
• Southern Community Services, LLC;
• Hinson Management Inc.;
• IMC Charleston LLC;
• Sisbro Properties, LLC; and
• Red Rock Management Agency, LLC