Can A Homeowners Association Take Your House ?
Definition of "Can a homeowners association take your house ?"
Falling behind on your payments is a significant issue for many homeowners. Not every unpaid bill leads to foreclosure, especially if there is no lien on your house. If you have a mortgage on your home, that is usually your first lien, but did you know that a Homeowners association (HOA) can put a lien on your house too? So what happens if you don’t pay your fees to the HOA? Can they take your home? Let’s find out!
The short answer is, yes. The Homeowners association can take your house if you miss your payments and there is a lien on your home. An HOA can foreclose its lien if the conditions, covenants, and restrictions (CC&Rs) allow it to do so, and they typically do. The fees owed to the HOA usually cover several services such as insurance, lawn care, pest control, amenities, maintenance, and many others. If you check the HOA’s rules and regulations, you can become familiar with HOA fees and know what kind of services to expect your monthly dues to cover.
Typically, if you miss one payment, you will be notified by the HOA that you have an outstanding debt. It is most likely that they will make you aware of missed payment consequences, such as being charged interest until you pay or incur a late fee. If you remain delinquent or fail to make payments regularly, they might warn you of legal actions that will be taken against you. But how much power does an HOA have? Can they go as far as to foreclose and take your home?
They definitely can process a foreclose and take your home. When can they take your house, or how far can you go without paying your bills? That depends on the state regulations. Some states have more restrictions as to when an HOA can initiate a foreclosure. In contrast, others don’t have any restrictions, and the homeowners association can foreclose on a home for as much as a few hundred dollars. Do check with your local real estate agents if you want to learn more about HOA’s near you.
Popular Real Estate Questions
Popular Real Estate Glossary Terms
Computer software packages designed to serve mortgage banking functions, such as mortgage loan accounting/servicing, loan origination, loan processing, lease/financial/investment analysis, ...
Local governmental ordinance breaking down the country into districts that are restricted on how private property is to be constructed and used. It applies to the land and buildings. The ...
The ability to pay is a self-explanatory term used in Real Estate to determine if the Home Buyer has the financial health to honor a deal. Mortgage Lenders can't afford to lend out money ...
Measure of the value of all goods and services produced by the economy within its boundaries and is the nation's broadest gauge of economic health. GDA is often a measure of the state of ...
Locating a structure after considering such factors as the homeowner's desired privacy, noise, wind, and sunlight. Position of a structure on a specific location relative to ...
When someone throws around the term “mobile home”, it almost requires further explanation to fully understand what that person is talking about. Why is that? Well, one mobile ...
Within Real Estate, “nuisance” is a term used to describe any disturbance that might affect neighboring houses. Nuisance abatement is the enforcing of policies and codes that ...
Charge assessed a mortgagor by the mortgagee when assuming a pre-existing mortgage. The assumption fee is often included in the closing costs when purchasing property. ...
Increased satisfaction a buyer obtains from the purchasing an additional unit of a good, service, or property. ...
Have a question or comment?
We're here to help.