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
A clause that may be inserted in a listing agreement stating no commission will be paid to the broker until the property title has actually been transferred. Normally, willing and able ...
People say, in real estate, there's a lot more than meets the eye. If you're connected to the housing market in any way, you've probably heard the term "implicit cost." It sounds fancy, but ...
Uncertainties associated with real property including lack of insurance coverage in the event of fire or injury, high crime area, and environmental problems. This risk may be reduced ...
Window having several overlapping glass louvers that are installed in a common window frame and pivot synchronously as a window lever or crank operating device, installed at the bottom of ...
Open Listing is a type of Listing where home sellers allow a real estate agent to sell their house, while not providing any kind of exclusiveness: other agents can also attempt to ...
Short-term loan that is made to bridge the term between the end of one loan and the beginning of another. ...
Cash earnings generated from a real estate investment or property. Cash earnings equals cash revenue less cash expense. The cash earnings may or may not be discounted to its present value ...
Also called an installment sales contract or contract foe feed. A type of creative financing in real estate allowing the seller to finance a buyer by allowing him or her to make a down ...
Also called settlor. A trust created by a will starting upon the donor's death. It empowers a trust administrator to implement the terms of the trust. ...
Have a question or comment?
We're here to help.