Homeowners associations are much more prevalent today than perhaps a few decades ago. Today if you buy a condo or townhouse or even many average single family homes; Whether you like it or not, you are most likely part of an HOA community. That means there will be various fees you will need to pay on top of your mortgage. So what happens when your home is repossessed? What fees can you expect to owe your HOA? We will proceed to discuss this issue right now.
To get started, we’ll explain the basic purposes of HOAs. They are legally required 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 you’re not willing to comply with; We strongly suggest that you research whether your potential home is managed by an HOA BEFORE YOU BUY! If you are unfamiliar with your legal terminology at any time before or after purchasing 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. The 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 home where an HOA exists! That is the best way to avoid all these problems. Nevertheless; On the plus side, a community can be much more well-maintained and enjoyable 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 full 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. This may prove whether incorrect bookkeeping 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 failed to follow the laws of your state when it filed a foreclosure proceeding against you. This can also be proven and legally challenged by an official who is an expert in these matters. In either case, you should be prepared to go to court if necessary to fight for your home.
