A local family is on the verge of losing their home to a homeowner’s association over a $40 returned check fee. That fee, imposed eight years ago, has ballooned to nearly $9,000 and it's a good example of the power HOAs wield. (WKRC, Provided)
WEST CHESTER, Ohio (WKRC) - A local family is on the verge of losing their home to a homeowner’s association over a $40 returned check fee.
That fee, imposed eight years ago, has ballooned to nearly $9,000, and it's a good example of the power HOAs wield.
A local family is on the verge of losing their home to a homeowner’s association over a $40 returned check fee. That fee, imposed eight years ago, has ballooned to nearly $9,000 and it's a good example of the power HOAs wield. (WKRC)
When Darrin Wargacki and his family moved into their new home in 2009, in the finely manicured West Chester neighborhood of Beckett Ridge, they had big plans.
“We spent a lot of time looking for this house; a lot of memories were made raising the three boys in this house,” said Wargacki. “The intent was always to make this our home throughout the years that we were here and keep it our home.”
But that dream has turned into a nightmare. In 2018, Wargacki wrote a check for the association dues—$240. It bounced. So, he wrote another check.
“And that cleared without any problems,” said Wargacki. “However, what the HOA did is they continued to bill me a late fee.”
Wargacki said that he never saw proof of the original bounced check and refused to pay it on principle. The initial $40 non-sufficient funds fee began snowballing. Court documents show eight years of $50 late fees and attorney fees added up to nearly $2,000. In September, the Wargacki’s HOA, The Becket Ridge Association, filed to foreclose on their home.
“I sold my son's college vehicle to fund it,” Wargacki said. “I paid $1,985 and zeroed out the balance.”
Or so he thought. Then he got a bill for additional association attorney fees – another $6,350. Darrin says he can’t afford to pay that. Local 12 asked a Beckett Ridge Association board member if he would comment on the case. He declined. Local 12 also got a similar response from the association's attorney.
Karel Costa-Armas with Homeowner Association Consulting says HOA boards are made up of volunteers who are your neighbors. It’s not that they want to wield their power; they simply can’t make exceptions.
“The enforcement must be there, or if you don't do that, then you allow for everybody to just run amok and then claim that you gave Freddie a chance; why didn't you give Susie a chance?” said Costa-Armas.
Costa-Armas was then asked if homeowners' associations want to foreclose on properties.
“Rarely ever does a board want to go through a legal proceeding," said Costa-Armas.
That may be the case, but the Beckett Ridge Association is certainly no stranger to foreclosures. Since 2016, it has filed for foreclosure 47 times. It appears it nearly always settles or dismisses the cases after receiving its back payments—which in Darrin’s case is now about $9,000 instead of $40.
Wargacki was asked if, looking back on the situation, he wished he would have just paid.
“Oh, absolutely, absolutely,” Wargacki said. “However, I have a fiscal responsibility to myself, to my family, and to my livelihood. Do I just turn over money wantonly and without any regard to knowing what it's for?”
A judge will likely answer that question if the Wargacki case ends up going to trial. Beckett Ridge Association v. Wargacki is continued until next month. The HOA’s attorney fees will likely continue to get added to the Wargacki’s tab.