“What do you mean, my HOA can foreclose on its members for delinquent dues?”
We get this question a lot, not only from wide-eyed delinquent homeowners but even from Board members! We find that even Board members may be unaware of this very important remedy their association may have, to bring light to the dark world of association nonpayment.
Usually, we explain it after we’re asked:
“Frank, we have a homeowner who hasn’t paid in years and ignores us completely. We’ve tried letters, we’ve tried suspending amenities and voting rights, and we’ve even tried getting money judgments. Nothing’s working! What else can we do?”
Foreclosure’s drastic, to be sure, but when you’re faced with a homeowner who believes he or she doesn’t have to pay dues and flat-out ignores you, foreclosure will either get their undivided attention or get them out of your community through a forced sale process.
Does it work? You bet. Here are some of our recent success stories:
- A homeowner owed over $20,000 in delinquent dues, and once sued for foreclosure, was in our office within days with a $10,000 certified check and a written commitment to pay the rest.
- Another homeowner let his home go to foreclosure, at which point he bought it back at the Sheriff’s sale for $174,000 cash, which of course was more than enough to get the HOA fully paid.
- We sued delinquent homeowners who had never paid a single month’s worth of HOA dues, which woke them up – they sold their property after being served with the case, and because there was enough equity in the home in today’s good real estate market, the HOA was paid every dime it was owed at the sale.