The purpose of an HOA is to maintain the properties’ values through enforcing the community’s promises to the homeowners and maintaining the common areas. HOA’s have a responsibility to preserve your community, protect its value and to protect your home. Annual fees paid on behalf of the homeowners go toward this maintenance of the common areas. If a homeowner were to fail to pay their dues a lien can be filed to enforce the agreement that the homeowner signed at closing. To file a file against a homeowner, the HOA will make a demand for the past-due amount and give the homeowner 30 days to pay. If the homeowner is still not in compliance after receiving the demand letter, the HOA may record the lien as an encumbrance against the title to the property. This means that if the property ever sells or is refinanced, the lien would be paid in full first. Within a year after filing the lien, the HOA may file to foreclose the property in court. If the HOA prevails in court, the property will be foreclosed.
The HOA laws are drafted heavily in favor of the HOA and not the homeowner. Liens are nothing to ignore. If you are a homeowner in an HOA and are faced with an HOA lien, contact Smythe & Jones PLLC right away so see what we can resolve for you. The faster you address the issue the better chance of a resolution. However, if you have waited, contact us anyway, we can assist you through the litigation process an attempt to resolve your matter even if your discussions with the HOA have failed.