It doesnâ€™t really matter if you own the home or there is a lean holder â€“ such as a mortgage company. Itâ€™s all about whether the HOA account is delinquent. Typically HOAâ€™s donâ€™t want the home, they just want to be paid the outstanding delinquencies, but foreclosure is one avenue they have for doing that. Keep in mind foreclosing on a property is a complicated and expensive proposition for an HOA, as such itâ€™s usually their means of last resort.
Best recommendation is to speak to the HOA about the matter and see if it can be resolved amicably. If you cant, you may want to consult an attorney to help you determine your best alternatives.
Best of luck,
The New Home Pros
The Adams Team at
Rothwell Gornt Companies
HOA can foreclose on your home if delinquent or assessed payments. Having a mortgage loan is not relavant.
You might want to contact your association and arrange payment plan or seek legal advise.
Your terms of the mortgage is that the HOA will be paid every month or you violate the terms of the loan.
Do not be surprised if the 1st mortgagee jumps in and pays the HOA and then starts foreclosure on the property. It is less messy for them if the HOA is cooperative and the amount is not very high.
In any event, if you do not pay the HOA, you will be moving.
The HOA has a budget. That budget relies upon every homeowner paying they HOA fee on time. Those funds keep the community operating. Those funds pay for the pool, clubhouse, and common areas. The HOA has no choice but to foreclose and sell the property to recoup the funds owed to them. Some HOAs are renting the property to collect the rent until the 1st or 2nd foreclose on them as the HOA will not pay the mortgage. This allows the HOA to get some funds back. Meanwhile, the Borrower takes the heat for the foreclosure.
The other option is that the 1st mortgagee (Bank with loan) will step in to pay the HOA fees and commence the foreclosure of the property themselves.
In some states, there is a limit as to the total amount that the HOA can collect no matter how much is owed to them. In these states, the HOA is quick to foreclose to be under the state mandated amount. The HOA does not care who pays them. They just want to be paid
If you cannot pay the HOA bill, go to the board and get on the agenda to speak to them. I have not met a board that will not work with you to make payments current if you really want to and have the ability to do so.
There are organizations that are available to assist you in paying the HOA fees and/or the mortgage payments. That may free up some funds to assist you in getting the HOA fees paid.
Chat with your favorite Real Estate professional that has Certified Default Advocacy Training (CDAT). They can guide you in the path to keeping your property if it is possible.
If you have exhausted options and just cannot afford to pay the upkeep including the HOA fees. Work with your CDAT to make the transition selling the property with as little pain as possible.
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Please contact me immediately if you know a person that cannot make their mortgage payments. I will work with them to avoid foreclosure or bankruptcy at no charge or fees to them.
Steven Goldman, CRS
Certified Distressed Property Expert (CDPE)
Certified Default Advocate (CDAT)
Certified Short Sale Professional (CSP)
Certified Probate Real Estate Specialist (CPRES)
GRI, ABR, SRES, CNHS, PM, CCI
Realty One Group
10750 W. Charleston #180
Las Vegas, NV 89135
The HOA can foreclose if you are delinquent on any fees or assessments owed to the homeowners association even if you are current on your mortgage payments. I believe the HOA takes on the mortgage debt when they foreclose. The real cherry on top is Nevada is a super lien state and associations take top priority over everyone in the collection chain. In my opinion HOA's have too much power and we see the abuses against homeowners all too often. Keep those fees paid and any citations paid and cleared in writing.
Petra Reyes, RealtorÂ®, SFR, ABRÂ®
Realty One Group, Inc
1333 N Buffalo Dr, Suite 190
Las Vegas, NV 89128
E-fax: 702-946 5038
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David Cooper Investor 702-499-7037