If you owe HOA dues and are in default, the homeowners’ association can initiate a foreclosure on your home. However, there are certain defenses a Foreclosure Lawyer can use in these cases. Below, you will learn about some of the most common defenses to HOA foreclosures.
Assessment Liens
If you don’t pay assessments and fees as required by the CC&R (covenants, conditions and restrictions), a lien is automatically attached to your home. In some cases, the HOA will file the lien with the county to offer public notice, even if it’s not required by state law.
Unpaid Assessment Foreclosures
Many homeowners do not realize that, even if they pay their mortgage on time, they could lose their home in a foreclosure if HOA assessments aren’t paid. If the HOA attaches a lien to your property, it can foreclose on the lien in much the same way as your mortgage lender would. Some people have lost their homes for being just a few hundred dollars behind on assessments.
Defenses to HOA Foreclosures
To fight a foreclosure by the HOA, your lawyer can use defenses such as:
- Incorrect accounting or overcharging – Some liens aren’t valid because of accounting errors by the management company or the HOA. If you believe your assessments have been inaccurately calculated, the HOA must document how they arrived at that amount, showing late fees, fines, interests and all other costs. All of the above fees must be set forth in the CC&Rs.
- Failing to follow statutes – If the HOA doesn’t follow state law, the case can be dismissed.
- Unreasonable fees – The fees must be reasonable. If an HOA forecloses on a debt of only a few hundred dollars, but tacks on thousands in fees, the judge may dismiss the case.
Steps to Take if You’re Facing an HOA Foreclosure
The defenses above are only a few of those available to Brent Sorenson & Associates P.C. Homeowners’ association laws vary by state, and are usually very complex. Fighting an HOA foreclosure is difficult, and you should call a local Foreclosure Lawyer to discuss your case and your legal options.
