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When a $100 HOA Fine Turns Into a Foreclosure Threat: The Charlotte Case Real Estate Pros Should Be Teaching From
- Skyline
- 14 minutes ago
- 4 min read
On January 13, 2026, a Charlotte homeowner’s yearslong fight with his HOA ended when the association withdrew its foreclosure petition in a brief court hearing.
It started with a $100 parking-related fine—and grew into a situation where the HOA was attempting to take a family’s home.
For real estate professionals, this story is more than a headline. It’s a client-education moment you can use to set expectations, reduce future disputes, and help buyers make fully informed decisions about living in an HOA community—especially in North Carolina, where the legal tools HOAs have (liens and foreclosure) can surprise even experienced homeowners.
What happened in Charlotte (and why it matters)
According to local reporting, Jeffrey Baldwin said his HOA assessed a $100 fine in 2022 after alleging he parked a “commercial vehicle” in his driveway in the University area. Baldwin said the conflict escalated, and the HOA pursued foreclosure.
WSOC reported that Baldwin and his husband live in The Settlements in northeast Charlotte and had paid dues for years. They said they didn’t fully realize how the situation had grown until the following year, when the fine had ballooned into much larger figures discussed in HOA correspondence. The HOA ultimately withdrew its foreclosure petition.
Baldwin has indicated the matter isn’t necessarily over—there may still be a future hearing related to legal fees.
Takeaway for agents: Clients often assume “it’s only $100” means “it can’t become serious.” This case shows how quickly HOA enforcement can become expensive and stressful—especially when owners dispute the underlying violation and the process drags on.
The real estate pro’s teaching point: HOAs can have real leverage in North Carolina
In North Carolina, the Planned Community Act provides a pathway for an HOA to:
Treat unpaid assessments as lienable after they’re delinquent for a period (the statute describes unpaid assessments for 30 days as a trigger for a lien when properly filed), and
Foreclose a claim of lien (under certain conditions), including an unpaid period of 90 days or more, plus required board action.
That doesn’t mean every HOA will foreclose, or that foreclosure is “easy” or “automatic.” But it does mean clients should treat HOA obligations as housing-critical bills, not “optional fees.”
Client-friendly way to say it:
“Your mortgage isn’t the only bill tied to your home. HOA dues, assessments, and certain fines can attach to the property and escalate if ignored.”
Where agents can add real value: pre-contract, due diligence, and post-closing coaching
1) Pre-contract: help buyers understand what they’re agreeing to
The most common HOA regret isn’t the dues—it’s the rules the buyer never really absorbed.
Encourage buyers to evaluate:
Parking and vehicle restrictions (work trucks, wrapped vehicles, commercial markings)
Exterior appearance controls (trash cans, holiday décor, lawn standards)
Rental restrictions (cap limits, minimum lease terms)
Architectural approvals (fences, sheds, solar, window changes)
Enforcement style (warnings vs. fines, transparency, responsiveness)
Pro tip: If the buyer’s job involves a company vehicle, or they anticipate frequent visitors, parking rules should be treated like a deal-breaker item—not an afterthought.
2) Due diligence: don’t just “get the docs”—teach clients what to scan for
When clients receive HOA documents, many don’t read them. They skim the dues amount and stop.
Give them a 10-minute “HOA reality checklist”:
Fine schedule: How are fines calculated? Per day? Per occurrence?
Notice and hearing process: What happens before a fine becomes formal?
Collection policy: When do they involve attorneys/collection firms?
Lien/foreclosure language: What do the governing docs say about enforcement?
Dispute/appeal options: Is there a defined appeal path or ADR/mediation language?
Management contact clarity: Who do you call/email when there’s a dispute?
This is also where your transaction management professionalism stands out: you’re not giving legal advice—you’re giving clients a framework to ask better questions.
3) Post-closing: teach “HOA hygiene” so small issues don’t become big ones
Most HOA disasters are preventable with boring, repeatable habits:
Set autopay for dues (and verify it actually drafts)
Keep an HOA folder: welcome letter, login info, covenant summary, violation notices
Update the HOA with current email + mailing address
Open and save every HOA notice (even if it seems minor)
If a dispute starts: respond in writing, calmly, and keep receipts/screenshots
And one of the biggest:If a client is disputing a charge, they should still respond immediately and document everything. In many disputes, silence is what lets timelines and attorney involvement accelerate.
Why this story resonates: the cost to fight can exceed the fine
One of the most important lines from the reporting is the underlying point: when enforcement escalates into legal action, the process itself becomes punishing, even if the original fine was small.
For agents, that’s the educational moment:
HOA living can be perfectly fine for many homeowners.
But clients should go in with eyes open: rules are enforceable, escalation can be costly, and timelines matter.
Policy reform note: North Carolina lawmakers have been debating HOA reform
WBTV reported that state lawmakers have pursued reforms like Senate Bill 378, which included ideas such as caps on fines, mandatory hearings, and additional notice/mediation steps before foreclosure—though the bill’s progress has been uneven.
Whether reforms pass or not, the practical advice remains the same: HOA obligations must be managed proactively.
Bottom line for real estate pros
Use the Charlotte $100 case as a simple framework:
Rules matter (especially parking/vehicle rules)
Notices matter (open them; respond quickly)
Paper trails matter (document everything)
Dues aren’t optional (treat them like the mortgage)
Education reduces drama (your clients will thank you later)
If you want, tell your clients: “HOA living isn’t bad—it’s just not casual.”
Have you ever helped a client resolve an HOA dispute? Leave a comment below or share with a colleague in an upcoming CE Class!
Works Cited
WBTV, “Charlotte man’s yearslong battle over initial $100 HOA fine finally resolved” (Published Jan. 13, 2026).
WSOC-TV (Action 9), “HOA takes steps to sell couple’s home over fine, then drops case” (Published Jan. 13, 2026).
North Carolina General Statutes, G.S. 47F-3-116 (Lien for sums due the association; enforcement) (NCGA).
North Carolina Judicial Branch, “Foreclosures” (HOA/COA lien/foreclosure overview and statute references).
UNC School of Government, bill summary for S 378 (2025–2026) (HOA revisions / hearing notice changes summary).
North Carolina General Assembly, S378v1 PDF text (“HOA Revisions”) (introduced Mar. 24, 2025).