Unfortunately, the answer in all states of the US is a resounding yes. The CC&Rs, which are restrictions that are said to "run with the land" (in other words, anyone who owns the land will be bound by the conditions) provide the authority of the Association to create and encumber homes with assessments, and these assessments under most laws are enforceable by court action.
But, unlike a mortgage company that can be extremely difficult to derail during a foreclosure process, working with your homeowners association can be far easier.
Most importantly, remember, it is NOT in the homeowners association's best interest to own your home. Typically, the lien created by the assessment is an unsecured lien, so while it can result in foreclosure of the home, a secured lien holder's debt (such as the debt from the mortgage company) is NOT wiped out in the process. Anyone assuming the title of the home through a foreclosure action of this type will either have to pay off the secured liens or arrange to assume the loan. In most cases, an HOA is ill equipped to do either so it is in their best interests to work with you, and, indeed, they will provided, of course, you move quickly to contact the attorney and the Association to resolve this issue and not wait until it is too late.
Immediately contact the attorney who sent to you the notice of default or foreclosure. Explain your financial situation and make arrangements to pay off the amount due, of if that is not possible, coordinate a payment plan. Keep in mind that you will need to at least pay for the monthly assessment, interest, legal fees and late charges each month, and work to completely pay off the total due within 1 year or less. Any less is unlikely to be accepted by the homeowners association's Board of Directors.
Good luck and contact the HOA today to ensure that your home remains in your hands!
Grace Morioka, SRES, e-Pro
Area Pro Realty
Co-Author: Homeowners Associations: A Guide to Leadership and Participation
Co-Host: Naked Real Estate on http://www.blogtalkradio.com
They will decide whether or not to get you caught up but beware, they will add the amount to you escrow which means a higher house payment for however long your lender has agreed to allow. It could be within a year or you could negotiate for longer. It depends on the lender but its definitely much less of a headache than the alternative.
This is only a suggestion based on my own experience. I don't mean to imply this is something that can be forced upon your lender, its entirely up to them. Also, depending on the circumstances, your lender may have other options they might be willing to offer. In my opinion, its just as important to keep the lender in the loop as it is the HOA. No communication is the worst thing you could do.
Let me know if I can help further,
This is a great question and the answer is not a simple one. I am not a lawyer so please do not take this as if I was a lawyer. You need to contact a Real Estate attorney to ge safe. HOA CAN foreclose on your property for non payment even if Citi has a lien on it. They are supposed to notify all lien holders before they forclose or auction your property - just like they notified you. If they fail to do so, then the lien holder still has a lien and a right to the house. If they DID notify all parties, then in most cases the lien holder (in this case Citi) will stop the forclosure or purchase the property from the HOA directly. As you can see it is a little complicated.
Let me know if I can help you or any of your family and friends with your real estate transactions.
Very simply.. YES.. check out Ute's and my response here:
I've not known for HOA's to immediately foreclose in the same year; but I've seen numerous HOA foreclosure happen right here on our courthouse steps on the first Tues. of the month.