Can My HOA Really Foreclose on My Home?

Live in a low-maintenance planned community? Then you probably pay assessments and fees every month to a homeowners association (HOA). HOAs rely on these monies collected to maintain the property. But what happens if you don’t pay these fees and assessments on time? In this case, HOA foreclosure on your property is possible.

If you’re asking, “can my HOA foreclose on my home?” and “can the HOA take my house?” the answer is yes. That’s why it’s important to learn the facts. Ask questions. And seek legal advice if you’ve been threatened with HOA foreclosure.

Why HOA foreclosure happens

Cristina Pelaez, attorney with Rasco Klock Perez Nieto, says it’s true: Your HOA may be permitted to foreclose on your home if you fail to pay what’s owed.

“The HOA can file a claim of lien for the failure to pay fees or assessments,” she says. Depending on your state’s laws, “it may also file a claim for unpaid fines equal to $1,000 or more. This is due to your non-compliance with the HOA’s governing documents.”

“Both state law and the HOA declaration provide the HOA with a lien against a non-paying owner’s property for any unpaid fees. Continue Reading