Homeowners Face Foreclosure After Developer-Run HOA Raised Monthly Fees to $2.5K

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The HOA says that large legal expenses were amassed while defending the claims brought by the homeowners, which greatly affected the 2027 budget.

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Just don’t pay. Maybe everyone make him know that you aren’t paying and that if he tried anything by the legal system that’s his choice.

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Posted on 11/2/26 at 11:49 am to djmed
Avoid HOAs like the plague!

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Thank you to each of you who have donated or shared! Please look at our updates and keep sharing!
They emailed their state lawmakers about their HOA… and now they’re facing foreclosure. Four homeowners in Sherrills Ford, NC are facing devastating consequences after raising concerns about how their community was managed. What started as simple questions turned into a legal battle that could cost them everything.

This isn’t just our word — it’s on the record. North Carolina law caps punitive damages and requires a real, proven injury behind them. Statements made to the government are often protected under the First Amendment right to petition and the North Carolina privilege law. North Carolina is one of the few states without an anti-SLAPP law to stop lawsuits filed to silence critics, and there is no state agency that oversees HOA disputes. Every fact in this campaign can be verified through public court records, the county Register of Deeds, the NC Licensing Board for General Contractors, and the North Carolina General Statutes.
This is not a routine HOA dispute. One individual controls every lever of power in this community: developer, Declarant, builder, HOA president, HOA manager, vendor, homeowner, and landlord. After turning the neighborhood from primarily owner-occupied homes into mostly rentals, he now owns much of the community and controls the HOA operations that govern everyone else. That concentration of power is exactly what makes this case so dangerous for the families still trying to protect their homes and their rights.

When homeowners asked for transparency and involvement, they were ignored. Seeking help, they contacted government agencies and their state lawmakers and, as a last resort, filed suit. The developer countersued just days before trial, calling their outreach “defamation.” With little time to prepare, the homeowners, had to find additional legal help which came with additional legal costs for trying to speak to their own government.

A jury tried to punish four neighbors with millions of dollars in punitive damages for speaking out. While post-trial motions and appeals are possible, the financial pressure is immediate and real. These families now face liens, foreclosure, and the loss of their homes while they fight to challenge the outcome.

Selling isn’t a real option. The developer’s restrictions and control make it nearly impossible to sell to anyone but him, and only at a loss. He has publicly stated: “I will own all these homes.”
In one example, during the discovery process, it was disclosed that in 2023 a homeowner repainted her house the same color the CCR rules already allow; since this information was made public, she has been fined $100 a day, now up to $27,000, and pushed toward foreclosure. In this case, the HOA President took on the role of Declarant. This is part of what makes this case so alarming: ordinary homeowners can be put at risk of losing everything over disputes that should never have escalated this far.

This isn’t over. There are active post-trial motions and possible appeals, but continuing the fight requires resources that these homeowners simply don’t have. They could lose everything unless they win this battle.

If you believe homeowners should be able to ask questions without risking everything… If you believe communities should be fair, transparent, and follow the law… Please consider donating or sharing this campaign. Even a small contribution helps cover real, immediate legal costs.
This is bigger than just four people. In North Carolina, homeowners can be dragged into crushing litigation for speaking out, and the state still offers too few protections when powerful interests use lawsuits to silence criticism. What happens here will matter far beyond one neighborhood.

Every dollar raised will go directly toward ongoing legal defense and appeals, court costs, and filing fees, as well as efforts to challenge the outcome of the case. This support will not only help protect these homeowners but could also set a precedent for protecting others in the future. Please consider donating, sharing, or spreading the word. Your support can make a real difference for these families and for homeowners everywhere.
Thank you!

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