Q: I am being sued by my HOA for failing to pay dues, I am $3,000 in arrears. Can they foreclose on my home?
A: It depends on the language of your HOA's bylaws. They may have the right to "foreclose" on your property, but it is more likely they will place a lien against your home. That said, you may also be liable for any money spent on collection efforts by the HOA, including any attorney fees, so the numbers may add up quickly. Presumably, you received and signed a copy of the HOA bylaws when you purchased your home. Now would be a good time to review those documents (some HOAs will even have them on the association website, or you could request a copy). If you're not adept to reading and understanding contract language, you might consider having an attorney review the document and advice you of the HOA's rights and your obligation under the terms.
To learn more, be sure to read our original article, “Can my homeowners association really foreclose on my house?”
A 25-year expert observer of the mortgage and consumer debt markets, Keith Gumbinger has been cited in thousands of articles covering a wide range of consumer finance and economic topics in outlets ranging from the Wall Street Journal to the Bottom Line newsletters. He has been a featured guest on national broadcasts for CNN, CNBC, ABC, CBS and NBC television networks and has been heard on NPR and other national and local radio programs. Keith is the primary researcher and writer for HSH.com's MarketTrends newsletter and has authored or co-authored a number of consumer guides on mortgages, home equity, refinancing and more.
