Foreclosure in 78247>Question Details

Mswillow2, Home Owner in 78247

Does HOA lien supersede a government Lien?

Asked by Mswillow2, 78247 Fri Apr 6, 2012

I was currently in foreclosure and I ended up getting a government loan to save my house which means the government owns my house until I repay the loan i.e. meaning they have a lien on my house until my balance with the government is paid. I have fallen behind in my HOA fees and am now being threatened by the HOA to either pay the delinquent amount owed in 30 days or they will foreclose. Can they do this if I have a government lien already on my house?

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Oh, by the way - in maybe every state, HOAs have a priority statutory lien on dues that take precedence over all. So, while the IRS may foreclose on the property, the buyer of the foreclosure is on the hook for at least six months of HOA dues.
0 votes Thank Flag Link Sun Mar 3, 2013
I wonder what happened . . . since April 2012 . . .
0 votes Thank Flag Link Sun Mar 3, 2013
An HOA can pace a lien in your property for unpaid dues, lien priority is determined by date of recordation, therefore the mortgage lien has priority. State property tax an liens and assessment, however, take priority over all other liens.
0 votes Thank Flag Link Sun Mar 3, 2013
Yes they can foreclose. So try to find the money to get up to date.
0 votes Thank Flag Link Sun Mar 3, 2013
Yes, they can. Any lienholder can foreclose; it's just that the lienholders are paid off in order of priority. In most states - maybe all, I don't know - in most states, HOAs have a statutory priority position second only to the IRS, which isn't a problem because usually there's enough money to pay both of them off.

If the HOA plans to foreclose, then they should have a good idea of whether it's worth their while - why foreclose when there won't be any money left for you?

But the real answer will come from a local attorney who reads the text of your deed of trust with the government.

All the best,
0 votes Thank Flag Link Mon May 21, 2012
When you say government lien what type of lien are you talking about?
0 votes Thank Flag Link Mon May 21, 2012
For sure speak with an attorney...
0 votes Thank Flag Link Mon May 21, 2012
You will want to check with your attorney on this one.
It is also probably a condition of your government loan to pay the HOA fees.
If you don't they may also foreclose on you.
This is not something to mess around with.

Can you get a family member, friend, or someone else to move in with you to help pay rent?
0 votes Thank Flag Link Fri Apr 6, 2012
Bruce Lynn, Real Estate Pro in Coppell, TX
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