If a homeowner owes assessments or dues to the HOA (homeowner’s association), the HOA has the option to foreclose on the condo or home. However, there are certain ways to prevent or delay an HOA foreclosure. Read on to learn how homeowners can stop the HOA from foreclosing on their home.
HOA Assessment Liens
When homeowners fail to pay assessments and fees imposed by an HOA, as required by covenants and restrictions, a lien will typically be automatically attached to the property. In some cases, a homeowner’s association will record the lien with the county to notify the public of the lien’s existence, even if state laws do not require that step.
HOAs Can Foreclose for Unpaid Dues
What many homeowners don’t realize before they visit the site is that, even if they are up to date on the mortgage, the HOA can foreclose if there’s a lien on the property. HOA foreclosures progress in much the same manner as a lender foreclosure. Therefore, a homeowner could lose their home even if they aren’t very far behind on HOA dues.
Stopping an HOA Foreclosure Due to Overstated Charges or Inaccurate Accounting
Sometimes, liens are illegitimate because of shoddy accounting by the HOA or a management company. If a person believes that an HOA has committed an error and used it as a defense, the HOA must back up its calculations including late fees, assessments and costs.
Dismissing a Foreclosure Because of Statutory Violations
If a homeowner’s association does not adhere to state statutes, a foreclosure can be vacated. In some places, delinquencies must be over a certain amount, or must have persisted for a period before a foreclosure can be initiated. If Foreclosure in Glendale AZ is started too early, the homeowner can use that as a defense.
Unreasonable Charges
Fines, late fees, and lawyers’ costs must be reasonable. For instance, if the HOA forecloses over a $500 delinquency, but penalties and fees increase the damages to more than $10,000, the judge may declare the fees to be unreasonable.
If Foreclosure is Imminent
These are just some of the legal defenses to an HOA lien or foreclosure, but there may be others. HOA rules vary from one state to another, and they are often very complicated. Additionally, the method that Asheton B Call will use to contest an HOA Foreclosure in Glendale AZ differs depending on the nature of the proceedings.
