Can a homeowners association foreclose on a house if you are current on your dues?

Answer 1

The remedy for default on HOA fees should be set forth in the document that created the association. You should review your copy. Generally, the HOA can obtain a court judgment and record a lien against your property. The amount due will increase with costs and interest until it is paid. If the amount becomes high enough the HOA may force a sale. However, that would be an expensive process.

Answer 2

Yes, an HOA can foreclose, but keep in mind if they foreclose, they would have to pay off the first lien (and any other liens) when foreclosing. If your mortgage is $200,000 and your property is only worth $185,000 - there is not enough money to pay off the first mortgage, so the HOA would get nothing anyhow.

Answer 3

Yes. Read your governing documents to determine when this is possible and the process required by the association before executing this action.

It depends on the laws in the state where the property is located. Foreclosures are allowed in California, for example, but only under certain circumstances based on the amount due and the length of time the debt has gone unpaid. In some states such as Massachusetts, the HOA must obtain a lien through a civil action and then follow through by taking possession of the property via a seizure executed by the sheriff. In that case there are certain rules that must be followed and the title acquired is imperfect.

You need to check the rules and procedures in your particular jurisdiction.

Answer 4

In most states, generally, foreclosure is a last resort that an association takes in order to recover past-due assessments. And it is a step that the association can and will take.

Your governing documents will spell out the process available to your association -- regardless of location -- to collect these valid debts (and the owner's responsibility to pay them). As well, there may be a separate Collection Resolution that sets forth steps in collection.

(Assessments are due and payable, because that is the association's source of income to pay operating expenses, so that the community's amenities and basic expenses can be paid.)

Answer 5

Read your governing documents to determine what additional charges the association can add to your lien-based assessments. These can be fines, late fees and so forth.

Foreclosure is generally the final step that an association will take against an owner in order to collect over-due assessments. Bet practices dictate that the owner work with the association to settle the matter short of any foreclosure action.

Answer 6

Read your governing documents to determine how this is accomplished.

The association and the owner both have responsibilities insofar as assessments are concerned. When an owner fails to honour the assessment obligation, the association may be able to foreclose on a unit.

This action, however, is dramatic, usually as a last resort, and usually when many thousands or tens of thousands of dollars are owed by the unit owner.

Answer 7

Yes.

Read your governing documents to understand when and why the association might be forced to take this final step.

Answer 8

Yes.

Read your governing documents to understand when and why the association might be forced to take this final step.