When you join a homeowners’ association (HOA), you can access numerous benefits and fulfill certain obligations. One of these responsibilities is the requirement to pay HOA dues or assessments. These funds typically cover the association’s operational costs, upkeep and other expenditures.
If you neglect to fulfill your financial commitments, the HOA may enact a lien on your property.
What is an HOA lien and why do they file it?
A lien is a claim against your property that the HOA can file when you cannot pay your dues. This lien gives the HOA the right to collect the unpaid amount and, if left unresolved, can potentially lead to foreclosure.
HOAs typically file liens as a last resort after multiple attempts to collect the outstanding balance. The lien serves as a public record, notifying potential buyers or lenders of the debt attached to the property.
Can you remove an HOA lien?
If you face an HOA lien, it is best not to panic. You have options to resolve the situation, including:
- Paying the outstanding balance
The most straightforward solution is to pay the due amount, including any late fees or interest. Once you have settled the debt, the HOA should remove the lien.
- Negotiating with the HOA
You can try to work out a payment plan or settlement with your HOA. They may be willing to negotiate, especially if you demonstrate a genuine effort to resolve the issue.
- Disputing the lien
If you believe the lien is unjustified, you can contest it. You must gather evidence to support your case and consider seeking legal advice to guide you.
- Refinancing your mortgage
You may be able to refinance your mortgage to pay off the HOA debt and remove the lien.
Addressing an HOA lien promptly protects your property and avoids potential foreclosure. To prevent your HOA from filing liens, it is best to foster open communication with them and staying current on your dues is best.
It is important to understand how HOA liens work and your options for removal so you can protect your property interests.