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Foreclosure by HOA threat

The HOA attorney writes “All such costs and attorney fees incurred by the Association in rectifying the matter become a charge against the offending lot and may be secured baby a continuing lien upon the property. All such amounts may be the personal obligation of the person who is the owner of the property at the time such amounts are assessed against the lot. Failure to pay such amounts when due may permit the Association to foreclose upon the lien or proceed directly against the owner of the property at the time such amounts become due and payable.” I am wondering if a foreclosure can take place by an HOA without a court hearing?

1 Response

  1. dennisl

    Susan;

    There are two types of liens that an association can put on your home. The first is an assessment lien for failure to pay assessments. That lien is statutory and is automatic and does not need to be perfected by a judge. Once that lien for unpaid assessments exceeds $1,200 or one years worth of assessments the association can file for foreclosure on the home in court. All HOA foreclosures must be judicial foreclosures so yes the association needs to go before a judge to foreclose on the assessment lien. Beyond assessment all late fees, penalties, collection cost and legal fees associated with the delinquent assessments are all added to the lien and typically exceed the unpaid assessment ten fold.

    The second type of lien deals with fines and penalties unrelated to assessment. To put a lien on your home for these charges the association must perfect that lien before a judge. However that lien may not be foreclosed on by the association. But you cannot sell your home without satisfying it.

    This is one of the most egregious aspects of HOA life. I’ve seen people lose their homes for a debts of $500 of delinquent assessments and $10,000 of collection cost and legal fees. But the association’s for the most part don’t want your homes the real culprit are the vulture attorneys who want all the money that they charged you to be paid and then will either buy your house or have one of their friends buy your house for pennies on the dollar then sell it a market price.

    Dennis

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