Win for woman bounced from 55-and-up home

WATERFORD When Sherry Snype took young relatives into her Atco home, she hoped to offer a stable environment for children facing a family crisis.

Instead, Snype received a complaint from the homeowners' association at her age-restricted community, The Legacy at Waterford Pines. That led to the sale of her property by a receiver — and a court fight over a $75,000 loss for Snype.

Snype won a round in that legal battle Wednesday when an appeals court ruled the association had failed to prove it sold the woman's house at fair market value. The property, purchased by Snype for $332,590 in 2008, was sold by a receiver for $257,000 in December 2014.

Both sides now are to present evidence before Superior Court Judge Nan Famular in Camden to determine whether the sale price was appropriate.

Snype had appealed an earlier ruling by Famular, who in September 2014 denied her request to set a minimum listing price of $350,000.

"We have always maintained the home was worth $350,000 and that's the evidence we presented," said Cherry Hill attorney Thomas Connelly, who represents Snype. "We're looking forward to the opportunity to present that evidence again."

But an attorney for the homeowners' association also claimed victory, noting the appellate ruling rejected Snype's arguments that she was denied due process.

The dispute began in 2011 when the homeowners' association at the 55-and-up complex learned Snype had taken several step-grandchildren into her home. The association demanded the children leave and Snype agreed in November 2012 that would happen by February 2013, the decision says.

When Snype missed that deadline, the association obtained a December 2013 court order appointing a receiver to sell her home. The order specified the sale price had to reflect the property's "fair market value."

While an appraiser for Snype valued the home at $350,000, a real estate agent hired by the receiver listed it for sale for $290,000 in March 2014, the ruling said. The agent, who based the initial asking price on a "market evaluation," later dropped the figure to $285,000, then $280,000.

The property finally was sold to a buyer who made an initial offer of $240,000, the decision says.

By the time of the sale, Snype had moved to Maryland, where she and the children are living with relatives, Connelly said.

In Wednesday's decision, a two-judge panel noted Famular heard expert opinion on the property's value from only one witness, Snype's appraiser, before her September 2014 ruling. It said Famular "raised legitimate concerns" over the figure, and "justifiably rejected it."

The ruling said the association, while asserting a housing downturn had reduced the property's value, "provided no expert proof …  to support that contention." It said evidence at the hearing was not sufficient "to resolve whether the association and its agents undertook reasonable steps to advertise and market the property."

The ruling said Famular, after hearing evidence from both sides, could devise "an appropriate monetary or other remedy." However, it noted that remedy could not include "rescinding the sale to the innocent purchaser if (the judge) concludes that the association acted precipitously in setting and dropping the listing price."

Paul Leodori, a Medford attorney for the homeowners' association, predicted Waterford Pines would prevail. "We're confident that when testimony is presented, the court will find the property was fully and adequately marketed," he said.

Jim Walsh; (856) 486-2646; jwalsh@gannettnj.com