Can a Home Owners Association file a notice of default if you are behind on HOA dues? Would this be the same as a bank foreclosure?

Asked by Worried, Las Vegas, NV Sun Jul 18, 2010

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Spencer, Home Buyer, California
Tue Jul 20, 2010
yes, it is. i hope i helped answer your question!!!!
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Len McGuirk, , Las Vegas, NV
Mon Jul 19, 2010
Hi there,

Yes, the HOA can technically foreclose on the property. Some will, but most won't though. If you would like to speak with a Short Sale Specialist, please give me a call. I have been successfully handling short sales longer than most agents knew what a short sale was. I would be happy to give you all the ins and outs of the process if this is where you might be headed. It is a great way to avoid foreclosure. My contact info is below.

Len McGuirk
Short Sale Specialist
Prudential Americana Group
Cell: (702) 203-6688
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Valerie Edwa…, Agent, Las Vegas, NV
Sun Jul 18, 2010
Like others have said, they definitely could foreclose but, are not likely. IF you owe less on your mortgage than what the home could be sold for, you should worry. If you owe more than what your home is worth, than the likelihood of the HOA filing a foreclosure is slim to none. They would be foolish to do so. I'm on the board at my HOA, and i am constantly asked what a home, that is late on their HOA dues, could sell for. I do the comps and tell them. By the time the collection agency, that assists the HOA, threatens to do something, the HOA already knows what the original loans and other liens are on the home. Hence, we balance what is owed on the home and what we could sell if for. Many HOA's are having MAJOR problems paying their vendors. Landscaping alone is way more than what you think in most community areas of an HOA. Many have had to raise the fees to the homeowners which is not good considering many HO's are seriously financially bleeding. But to answer your "depends", if you owe less than what it is worth i suggest paying up what you can. Write a letter of hardship and try to get a payment plan. Tell them what you can pay each month and how long it will take to pay it back and why you need the payment plan. if you owe more than what it is worth and you are at risk of foreclosure than i guess you won't need to worry. However, if you hope to keep your home, somewhere down the road YOU will need to catch up. The longer you take to pay, the more late fees, attorney fees, collection fees.....fees, fees fees will pile up and you will have a difficult time getting out of the hole you dug with the HOA. They typically do NOT waive fees, because they have to pay them to the attorney/collection company. Know what your objective is and work in the best way to reach that goal with as little blood loss as possible. If you are seriously under water and are at risk of foreclosure, waste not another minute, and either 1) apply for a loan modification and or 2) begin a Short Sale process. The sooner you start it the sooner you will get an answer. If the bank(s) will do a foreclosure and release you from future liability, you can begin your knew life, debt free of a mortgage. If the bank doesn't do a short sale for you, it doesn't change the time line of the foreclosure process. Be SURE to get an experienced Short Sale Agent. The SFR, listed below my name stands for Short Sale Foreclosure Resource which simply put, means the agent has done more than just talked their way into your living room regarding short sale matters. I personally work with a company that gives you access to an attorney if you want to consult with one to KNOW the risks and consequences affecting you and your family.

Remember, "Time is of the essence!" Best of luck.

Valeri Edwards, REALTOR
Premier Real Estate
(702) 371-5533
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Bob Movin-On, , Hartford, CT
Sun Jul 18, 2010
Yes, it would be the same as a foreclosure, but the likelihood they would pursue it to that point is slim because they would have to pay off the first mortgage in order to take possession.

Be proactive, call them, explain your hardship.

Good Luck,
Bob Patrick
Buy a home after foreclosure expert
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Amy Kohlin, Agent, Las Vegas, NV
Sun Jul 18, 2010
Your HOA can file a lien against you for a deficiency. You are responsible for bringing that current prior to closing even if you short sale your house. The bank will not take care of that for you. Contact me if you would like to discuss
your options. You need to be proactive to protect your credit as much as possible.
Amy Kohlin
Coldwell Banker Wardley
Web Reference:
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Jason Allen…, , Las Vegas, NV
Sun Jul 18, 2010
Hello Worried,

Yes, the Common-Interest Communities (HOA's) may file a Notice of Default, and they can start the process quicker than a Bank. Also, if you are behind in the mortgage, this may cause the Bank to initiate their process sooner.

I can suggest a few real estate based attorneys for you to consult with, please contact me if you want thier information.

If you would like a free consult on your Real Estate options, please contact me.

Jason Allen Gardner, SFR
Broker / Salesperson REALTOR
Exit Realty Imoti
Web Reference:
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Chantella Br…, , 89135
Sun Jul 18, 2010
Yes they can. i do not know how long they let it go unpaid before they turn it over to a collection agency. But once they do, the collection agency, who is usually a law firm will tack on there fees, which are very high.
Then after they have been unsuccessful at collecting they will put the home up for auction.

How far behind are you?

Chantella Brimhall
"Short Sale & Bank Owned Specialist"
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