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An HOA can and should at least put a lien on your house. No HOA is perfect and it can be frustrating with renters and absentee owners but I can assure you that the HOA is probably frustrated with them as well. We have issues with renters in our neighborhood too. The HOA has to go after the owners, they cannot really do anything directly to the renters because the renters are just that - renters.
You have to pay your dues though. You agreed, and even if you don't like it, they are legally owed their money. You are only hurting yourself for not paying....and now the bill has risen to $1500. I'll bet that if you do wind up selling your house, you could have a problem unless you pay what you owe. You are going to have to go to the HOA to get purchase the latest copy of the bylaws, etc. for the new owners and that will be in the contract. Even if you have an old copy - they will want a new one in case any changes/additions have been made.
Let me ask you - have you been in contact with your HOA regarding the neighbors? Have you attended meetings, volunteered, etc? If you haven't - you have no one to blame but yourself. Sorry.
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I assure you that an HOA does file a lien before attempting to foreclose on a property. Due to the cost to do so, the HOA will try alternative options to collect on debts before attempting to foreclose. The process is slow and expensive due to legal fees.
Every now and then I read a story about some poor person whom the HOA foreclosed on for the dues. (Not sure how that works because the first trust would want to be covered...maybe there were no mortgages.)
At any rate, I've also read where homes were foreclosed on by the mortgage holder and a few years later the HOA comes after the owners for non-payment of the dues.
Do some google searching and see what you come up with on this.
That state laws may allow an HOA to foreclose, does not mean HOAs do.
If an HOA is successful in foreclosing on a property, the HOA becomes responsible for the first mortgage, property taxes and insurance. Unless there is substantial equity in the property, no HOA is going to even consider it.
The internet is chock full of scare stories as it relates to HOAs foreclosures. Maybe, once in a blue moon it happens.
Laws about recovery of unpaid assessments vary by state. It is not uncommon for an HOA to pursue a judgment well after the fact of a lender foreclosure or property abandonment. In some case, a court will allow a wage garnishment.
That state laws may allow an HOA to foreclose, does not mean HOAs do.
If an HOA is successful in foreclosing on a property, the HOA becomes responsible for the first mortgage, property taxes and insurance. Unless there is substantial equity in the property, no HOA is going to even consider it.
The internet is chock full of scare stories as it relates to HOAs foreclosures. Maybe, once in a blue moon it happens.
Laws about recovery of unpaid assessments vary by state. It is not uncommon for an HOA to pursue a judgment well after the fact of a lender foreclosure or property abandonment. In some case, a court will allow a wage garnishment.
Without even trying, I know of a few around here.
Often, an HOA finds itself under water immediately on a foreclosed home. Can't re-sell it and paying through the wazoo to keep it and keep it up.
I know one that the HOA took and let go immediately to HUD. I think it was a drug house and that the entire maneuver was strategic by the HOA to get the owner out of the neighborhood.
That state laws may allow an HOA to foreclose, does not mean HOAs do.
If an HOA is successful in foreclosing on a property, the HOA becomes responsible for the first mortgage, property taxes and insurance. Unless there is substantial equity in the property, no HOA is going to even consider it.
The internet is chock full of scare stories as it relates to HOAs foreclosures. Maybe, once in a blue moon it happens.
Laws about recovery of unpaid assessments vary by state. It is not uncommon for an HOA to pursue a judgment well after the fact of a lender foreclosure or property abandonment. In some case, a court will allow a wage garnishment.
You are 100% incorrect.
HOA is not responsible for the first mortgage - that remains the original mortgagee's responsibility
Insurance? Townhouse or condo HOA's usually pay for the exterior building insurance anyways, so adding a foreclosed unit is very cheap. My HOA pays around $60.00 to insure a foreclosed unit.
Property Taxes? This is a gray area. I can tell you that the city here chases after the primary mortgagee.
HOA Liens are third in line behind the mortgage company, taxes, IRS.
Also HOA foreclosures are more common than you think. Several HOA's now foreclose and rent out the properties to assist in recovering for lost dues.
HOA is not responsible for the first mortgage - that remains the original mortgagee's responsibility
Insurance? Townhouse or condo HOA's usually pay for the exterior building insurance anyways, so adding a foreclosed unit is very cheap. My HOA pays around $60.00 to insure a foreclosed unit.
Property Taxes? This is a gray area. I can tell you that the city here chases after the primary mortgagee.
HOA Liens are third in line behind the mortgage company, taxes, IRS.
Also HOA foreclosures are more common than you think. Several HOA's now foreclose and rent out the properties to assist in recovering for lost dues.
??????????????
How does the HOA secure the title w/o paying off the first mortgage?
I thought first mortgage takes precedent over any liens.
How does the HOA secure the title w/o paying off the first mortgage?
I thought first mortgage takes precedent over any liens.
Right-O!
The lien is a lien on the property, not on the borrower.
The lien is secured by an interest in the property.
The banks are glad to see an HOA make regular payments, rather than be burdened by an underwater homeowner who is in arrears.
Right-O!
The lien is a lien on the property, not on the borrower.
The lien is secured by an interest in the property.
The banks are glad to see an HOA make regular payments, rather than be burdened by an underwater homeowner who is in arrears.
At least in Florida it works just like Suncc49 said:
"You are 100% incorrect.
HOA is not responsible for the first mortgage - that remains the original mortgagee's responsibility
Insurance? Townhouse or condo HOA's usually pay for the exterior building insurance anyways, so adding a foreclosed unit is very cheap. My HOA pays around $60.00 to insure a foreclosed unit.
Property Taxes? This is a gray area. I can tell you that the city here chases after the primary mortgagee.
HOA Liens are third in line behind the mortgage company, taxes, IRS.
Also HOA foreclosures are more common than you think. Several HOA's now foreclose and rent out the properties to assist in recovering for lost dues."
The HOA DOES NOT make mortagage payments, taxes, etc. but is responsible for both the upkeep and HOA fees after they foreclose.
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