AZHOC - Arizona Homeowners Coalition
Voice for homeowner rights and justice.


My HOA is potentially facing receivership. Has anyone been through a receivership? What was the experience like? What were the financial costs?

1 Response

  1. dennisl

    There was a community in Prescott that went thru court mandated receivership a couple of years ago. This is nothing that anyone wants to go thru voluntarily. In that particular case the board was forced to provide records to a homeowner that would have potentially subjected the board to criminal charges. Rather than do that the entire board resigned. Without a board the management company and the association attorney also resigned. The homeowner sued the association for contempt of court. No one in the community was willing to run for the board under these circumstances. Without a board the association essentially did not exist and all property sales in the community were stopped. The records of the community were dropped off in the old attorneys office and they refused to turn over any of the records requested, since they had to client to represent. The court case was long and i worked extensively to help the homeowners in this community. The association attorney even attempted to slander me and my organization in court and i filed a complaint with the Arizona Bar. (totally useless organization). The court appointed receiver was actually very helpful and brought the community back to a point where the homeowners were once again comfortable with running for the board.

    During receivership all homeowner rights are suspended and the community is under the total and exclusive control of the receiver. He can do whatever he feels necessary to get the community back on their feet and the cost is all borne by the homeowners. Including all the court cost of the scum bag attorneys in that case.

    In this case the outcome was good the cost is going to be the cost and no-one has any choice in the matter.

    If you have an opportunity to avoid receivership that by all means do whatever you can to do that.


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