I own my home outright but was forced to move out after a bid of $500 to buy it – then they wanted $13k for me to return

A HOA resident facing a demand for $13,000 in fees and court costs ended up losing his home.

His property - which he owned outright - was then sold at auction, with the sole bidder offering just $500.

This historic case, as reported by CBS affiliate WHNT-19 in 2017, was picked up by the broadcaster as the man said he'd been pushed out of his own home.

He had temporarily moved to a hotel at the time.

Experts have long warned of America’s broken housing system.

Douglas Pegues had been living in Huntsville, Alabama, for more than a decade when he became embroiled in a lengthy court dispute with his HOA.

He said he'd refused to pay monthly dues of $50 as his HOA hadn't fulfilled its promise to build a pool and an office.

Pegues maintained that the homeowners’ association covenant was only valid if the HOA had actually provided this "common property.”

The most recent court document in relation to his defence against the Shamrock Homeowners Association was published in 2019.

Alabama's Court of Civil Appeals rejected his attempt to overturn a decision by the Madison Circuit Court.

DUES

That confirmation brought to a conclusion the ex-Boeing engineer's legal attempt to stay in his home - which he had owned outright.

He had started fighting an HOA lawsuit in 2012 - the first of a series of court battles stretching for nearly a decade.

Pegues did achieve a win at an early stage, when the court agreed he shouldn't have to pay back dues.

However, the judge did order him to pay fees in future to his HOA.

Then, the association was victorious in a 2014 hearing, when Pegues was ordered to pay more than $3,000 in dues, interest and fees.

He was also landed with a $10,000 bill for its attorney’s fees.

Pegues lost his appeal against that decision in 2016.

The HOA next obtained a writ to have the $13,000 paid out, as ordered by the Madison County Clerk of Court.

SHERIFF

When this amount wasn't paid, the local sheriff's office advertised his home for auction.

According to court records, an auction was held at the courthouse in April 2017.

The filings showed the HOA's attorney Jonathan Watson, was the sole bidder - offering just $500.

A letter was then sent to Pegues notifying him that he had 10 days to leave his home.

This notification was due to him failing to pay the $13,000 judgment.

The man told the broadcaster he intended to continue his fight to hold on to the property.

But this was to no avail, as the 2019 determination scotched his further appeal.

COVENANTS

“A lawsuit was filed in 2014, as Mr Pegues had refused to honor his contractual obligations to the HOA," the HOA's attorney said in a statement.

"Every member of the HOA is required, per the restrictive covenants, to pay assessment fees and to observe building restrictions.

"Mr Pegues did not abide by these terms.

“The association won the lawsuit and acquired a judgment against Mr Pegues.

"Mr Pegues appealed and lost. He has refused to pay and satisfy this judgment.

"As such, the [HOA] has taken lawful and reasonable action to recover the judgment against Mr Pegues.

"He has been informed and has received notice throughout each stage of this process. He has nonetheless refused to act.

“The current situation is the complete result of Mr Pegues’s failure to act.

"The association will continue to pursue its rights under the law and pursuant to the restrictive covenants on behalf of its members.”

The US Sun is unable to contact either the HOA or Pegues for further comment.

"An HOA in Alabama can place a lien (legal claim) on a property for unpaid assessments or fines," said a Steadily housing blog in February.

According to the Alabama Secretary of State, this lien can lead to foreclosure if the debt remains unpaid.

But, any eviction can only occur after the HOA has legally notified the homeowner of the amount owed, and provided a reasonable payment schedule.

The World Economic Forum said in a report last year that buying homes in the US has become more difficult, crowding out first-time and first-generation homeowners.

"In the last 30 years, little has been done to innovate around affordable housing production, financing or preservation.

"Renters have higher cost burdens and it appears like many will permanently be locked out of homeownership.

"All levels of the US government need to work towards advancing equity and fairness in the US housing market," it said.

"One thing is abundantly clear. Alabama has a housing problem," said AL.com this month.

“The housing issue didn’t happen yesterday and we’re not going to fix it tomorrow,” said affordable housing expert James Stockard at a recent housing forum hosted by the Public Affairs Research Council of Alabama (PARCA).