Absolutely. However, once they foreclose, they become responsible for the maintenance and upkeep of the home. It is more likely that they will get a judgement and place a lein, which would have to be covered when you resold (the lawyer will satisfy the leins (with the proceeds of your sale) and get them released to close on the sale).

If you are referring to homeowner dues, then the answer is a definite YES! Do not think that you can ignore this responsibility. Dues must be paid for streetlights, pool maintenance, landscaping, etc. When dues are not paid, the entire community suffers. I have seen communities where the streetlights stopped working and entrances became weedy and this affected home sales and property values. At the very least, a diliugent Board will put a lien on the property and this will have to be paid when the property is sold. (Consider the cost of all those late fees and legal expenses.) It just isn't worth it.

Most Association Boards will work with an owner if they need to set up payments due to a job loss, divorce, or other life changing event. It is better to meet this head on rather than stick one's head in the sand and hope it goes away. As an HOA consultant, I feel strongly about educating prospective buyers about these responsibilities. I also encourage realtors to please provide HOA documents, including the budget, to all interested buyers.

Different states vary. Here in Massachusetts an HOA or condo association can file what is known as a "priority lien" which goes above the first mortgage. I'd absolutely take back association fees seriously.

If your condo is mortgaged, the "first" mortgage holder has first and best lien on the property which means only your "first" mortgage holder can foreclose on the property. You pay title insurance at closing to protect the first mortgage holder against any other banks or entities obtaining first lien position. (This enables the mortgage holder to recoup losses by foreclosing on the property for which the mortgage isn't being repaid). The association can buy or finance your mortgage and then their lien would take first position, but in this market with declining property values, the association will put themselves in a vulnerable position by absorbing your mortgage as their own financial burden , simply to recoup a temporary and nominal loss such as past due association fees. While you are required to sign a PUD or Condo Rider to your mortgage agreeing to the association's terms, this rider doesn't give the association first and best lien over the mortgage holder. Keep in mind... It is your mortgage holder who provided the rider to you, and in their own best interest... not in the best interest of the HOA. I would however take the lien seriously and repay the association as you can. Additionally, you cannot refinance or sell without paying the association's lien first.

Unfortunately - Yes they can.

Yes.I concur with all the other answers, but be careful.I had to help a client recover a condo in Houston because the Home Owners Association decided to foreclose on the property. My client was an absentee owner, he lived in Mexico and never got any notices because he had not left a mail forwarding address. He had paid cash for the property so the Home Owners Association thought they could own a free and clear condo just by just paying the foreclosure costs. Fortunately, after it was foreclosed, he HOA agreed to quit claim the property back to my client with the payment of what was owed plus all the other foreclosure expenses.

They will put a lien, but if they foreclose they will hv to pay/buuout all mortgages before. Long process, associations do not go that far. Do not ignore their notices.

As a former HOA President, and Architectural Chairman of my current HOA: Yes. One remedy to delinquent dues or breach of covenants/restrictions is a foreclosure filing. Although it is usually a last resort, it is an option, but typically the HOA will file a lien first. At 99% of the closings I have attended, the buyer signs a Planned Unit Development (PUD) Rider, where the purchaser agrees to abide to any covenants or restrictions set forth by the Homeowner's Association.

Hi Cindy - It most cases no, they can put a lien on the property so that the owner cannot sell the property or borrow money against it without paying off the hoa/regime lien first.

Hope that helps,

Randall Sandin, 843-209-9667, rsandin@carolinaone.com