The short version
At the August 13, 2026 meeting, Management disclosed real numbers on legal fees, collections activity, and — for the first time we're aware of — the actual number of homes currently headed toward foreclosure in our community: five homes currently in a foreclosure situation, one potential sheriff's sale, and seven more that could follow. Management also told the Board, plainly, that the Association could end up owning a home as a result.
This page lays out those numbers as they were actually presented, and what we think every homeowner should be asking as this moves forward.
Legal fees — budget vs. what's actually happening
Management set the 2027 budget for the “Legal Fees, General” line item at $2,000 — described as covering “any legal questions the board may have.”
Separately, Management discussed a related but different line: money the Association recovers from homeowners for legal and collection costs. The numbers given for this were not entirely clear in the recording, and we want to be upfront about that rather than guess. What was stated:
- An annual budget for legal fee collections of $19,000 (stated once); and
- An actual amount collected so far this year, through June, of roughly $5,000.
We're flagging the imprecision here deliberately. We'd rather tell you what we're not sure about than present a number as exact when the recording itself wasn't clear. If you want the precise figures, the Association's monthly financial compilations — which the Association has stated are posted on its website — should show the exact budgeted and actual numbers for these line items.
Five homes in foreclosure. One possible sheriff's sale. Seven more behind them.
This is the number we think homeowners most need to see, in Management's own words, explaining the reasoning behind the resolution to give the Board President sole legal authority (covered in a separate Board Watch post):
We have at this time five potential. We have five in a foreclosure situation right now, and we have the potential of one sheriff sale, and we have the potential of another seven going to foreclosure.
That's twelve households, out of 324 homes in this community, either currently in foreclosure or at risk of it. We are not naming anyone, and this page is not about any individual homeowner's situation. We're raising it because the scale is worth knowing, and because it was the stated justification for a significant governance change adopted at the same meeting.
“The Board needs to know that we're about to own a home”
In the same discussion, Management described what happens if a foreclosure reaches a sheriff's sale and no one else buys the property:
You have the ability at any point in time to say, Diana, call an emergency meeting or call a 48 hour meeting. The board needs to know that we're about to own a home.
And again, moments later:
…going to sheriff sale, and we're about to own a home, and what we're going to do past that.
This is a real possibility worth every homeowner understanding: if a foreclosed home goes to sheriff's sale and the debt owed to the Association exceeds what a buyer is willing to pay, the Association itself can end up as the legal owner of that property — with all the costs, liability, and decisions that come with owning real estate, on top of everything else in the Association's budget.
Why we're raising this alongside the legal authority resolution
We've separately documented our concerns about the resolution passed at this same meeting granting the Board President sole, standing authority over all legal matters — not just foreclosure and collections, but litigation of any kind, indefinitely, without a Bylaws provision we could find that supports it.
We think the foreclosure numbers matter to that conversation directly. Handling twelve households' worth of collections, foreclosure, and potentially a sheriff's sale is real, serious Association business with real financial consequences for every homeowner — not something to wave through without full Board involvement, and not something that should ride on the back of a resolution written broadly enough to cover “all legal matters” when the actual, stated need was narrower.
What we think homeowners should ask for
- A clear, current accounting of how much the Association has spent so far this year on legal fees, collections costs, and any foreclosure-related expenses, compared to what was budgeted;
- An explanation of the Association's plan if a sheriff's sale results in the Association acquiring a property, including what costs and liabilities that could create; and
- Confirmation of how many of the twelve households referenced at this meeting have since been able to resolve their situation, and how many remain at risk, as this is updated in future meetings.
Read the source documents yourself
We don't want you to take our word for any of this. Everything above comes directly from the full audio recording and transcript of the August 13, 2026 meeting, and the Association's own financial compilations. We encourage every homeowner to request the current collections and financial reports directly from the Association. Here's how to reach the board.
This page reflects the independent review and opinion of a McClellan Meadows homeowner, based on the record of the August 13, 2026 meeting. It is not legal or financial advice. Where exact figures could not be clearly verified from the meeting recording, we have said so directly rather than presenting an estimate as certain. If you believe any factual statement on this page is inaccurate, please contact us so it can be corrected.