When can Homeowners Association foreclose?
As if we needed yet another reason to hate HOA’s, we now can add foreclosure threat to the ever growing list of complaints against HOA’s. According to analysis of the ruling found on HW.com “the court upheld a law that allows homeowner’s associations to foreclose on homes ahead of first mortgage providers, solidifying “super lien” priority for HOA claims in Nevada”. The case in question involved a $6,000 lien that was foreclosed upon by SFR Investments, wiping out an $880,000 first lien held by U.S. Bank.
Homeowners need to know about their HOA obligations and understand that delinquencies can lead to devastating losses, even when they involve amounts as low as $6,000, or really any amount for that matter. Should you begin receiving certified mail from your HOA or its attorney you should not take it lightly! If you are unsure of your obligations under your HOA you should review your homeowners associations Covenants, Codes and Restrictions as well as any additional by-laws which may limit your use of the property and could put you at risk of monetary fines.