HOA Foreclosure Fees
Homeowners associations are much more prevalent today than they were perhaps a few decades ago. Today, if you buy a condo or a townhouse or even many average single family homes; Whether you like it or not, chances are you are part of an HOA community. That means there will be various fees you’ll need to pay in addition to your mortgage. So what happens when your home is foreclosed on? What fees can you expect to owe your HOA? We will proceed to discuss this topic right now.
To begin, we will explain the basic purposes of HOAs. They are legally obligated to manage and oversee the upkeep of their specific community in accordance with the laws of their home state. Each HOA generally has its own set of rules and restrictions that apply to each home within that community; including YOURS. In addition to being the party that enforces these rules and restrictions; HOAs are responsible for collecting any fees or assessments associated with each home within their community. If this sounds a bit over the top and you like something that you are not willing to comply with; We strongly suggest you find out if your potential home is managed by an HOA BEFORE YOU BUY IT! If you are unfamiliar with your legal terminology at any time before or after you purchase your home, consult your real estate attorney.
It is vitally important that you know that; if an HOA has a lien on your property, THEY LEGALLY HAVE the right to foreclose on that lien. This is true even if you are paying a separate mortgage fee and are on time with those payments. Details regarding these procedures vary depending on state laws and the rules established in the first place by your HOA. Again; If you don’t like these concepts of an HOA, DO NOT move into a house where there is an HOA! That is the best way to avoid all these problems. Nevertheless; On the plus side, a community can be much more well maintained and pleasant to live in if an HOA is in charge of it. So there are definitely good points to having an HOA.
There are legal options available to you if your Home Owners Association initiates foreclosure proceedings against you. For complete details; again we urge you to contact your attorney. However, in general; One option is to have your accounting records legally examined by an expert. It is possible that this proves whether incorrect accounting has led to this foreclosure action. If the HOA does not comply with this legal request, your foreclosure proceedings may be dismissed. Another reason for the possible dismissal of this action could be if your HOA did not comply with the laws of your state when it filed a foreclosure proceeding against you. This can also be legally tested and challenged by an officer skilled in these matters. In any case, you should be prepared to go to court if necessary to fight for your home.