If your condo or home is a part of a homeowner's association (HOA,) you are required to pay dues and assessments when asked by the HOA. If you fail to pay these costs, the consequences are severe. The HOA has the authority by law to initiate a foreclosure on your property if you refuse to pay these expenses as required.

An HOA foreclosure is similar to a foreclosure on your home by a mortgage lender, with the exception of several cases. The HOA must give you fair warning before initiating the foreclosure on your home. For example, they may need to get a lien on your home that will lead to a foreclosure, and they will need to send you a variety of letters prior informing you that they have not received necessary payments.

The HOA fees are used to maintain the community of the complex or neighborhood where your property is located. The costs often go into landscaping, security, snow removal, repairs and maintenance for community facilities and other expenses. HOAs will typically develop a budget and then divide the total expenses by the number of homes in the community. The homeowner is required to pay his or her share on a monthly basis or another fixed schedule throughout the year.

HOAs can place a lien on your property if you do not pay in due time. The lien will automatically attach to the homeowner's property at the date that the assessments or fees were due. In some cases, the HOA will record the lien with the county recorder sot that they can provide public notice that the lien exists. If you fail to pay the dues in addition to late charges, the costs of collecting, fines and interest, you may face foreclosure.

If it becomes necessary to foreclose, the HOA can start the process using a judicial or non-judicial foreclosure. The first mortgage on the property will remain even after the foreclosure, making it necessary for you to pay on the property despite the fact that it was foreclosed by the HOA.

There are some limitations on HOA foreclosures. For example, the state laws can create their own laws on how HOAs can foreclosure an assessment lien. Some states require that the assessments must meet a certain threshold and must be delinquent for a certain time period, such as a year. A local lawyer can give you more information about HOA foreclosures are handled particularly in your state.

If you want more information about HOA foreclosures or if you are facing a potential foreclosure and would like to fight this in court, call a local real estate attorney today to assist you in your case.