If you are behind on your homeowners’ association dues, then the homeowners’ association has a right to hire a collections agency to collect on your dues and even foreclose on your property. When this occurs, the homeowner may have defenses to prevent foreclosure.
Foreclosure is triggered by a lien on your property. When you are late on your HOA dues, then the HOA can place a lien on your property. And when you do not remove the lien, then the HOA at any time may choose to foreclose on your property to get their dues.
Even if you are timely with your mortgage payments, your property may be foreclosed upon.
To remove the lien, you generally would have to pay the entire HOA past-due assessments. If you cannot afford it, then you may arrange a repayment plan with the HOA to prevent them from foreclosing on your property.
Nevertheless, there are some defenses available to you to lower the amount due. Essentially, you would be arguing that there is some misconduct by the HOA and that you do not legally owe the entire amount of money.
The available defenses include:
- HOA charged an excessive amount for dues and miscalculated.
- HOA assessments were mishandled and not used as specified in the CC&R’s.
- The HOA assessment late charges are unreasonable.
- The lien was recorded improperly.
- The HOA did not follow the appropriate foreclosure process.
Foreclosures are a very complex area of law that will affect your credit score and social reputation. A real estate lawyer can advocate on your behalf and strategize with you to prevent the foreclosure.