Should the condo association or HOA foreclose on its lien if the owner is in mortgage foreclosure?
It depends. We approach these delinquent accounts on a “case by case” basis. If the property is vacant and the owner appears to have “walked away”, lien foreclosure is not likely to compel payment and the association might be better served pushing the bank foreclosure to a conclusion and pursuing the new owner. However, if the property is owner-occupied or rented, pressure from the condo association or HOA can often compel a positive financial result for the association. We recommend that the board with assistance of counsel adopt a strategy for each delinquent account and be aggressive in the right spots, rather than taking the same approach “across the board”. Our Helpful Resources page features an article with more detail on this subject.
Related Questions
- If my condo or HOA forecloses on its lien for unpaid assessments and takes title to a home, is the association responsible for the mortgage payments?
- What can the condo association or HOA do to recover past due assessments if it forecloses on its lien and takes title?
- What can a condo association or HOA do if a delinquent owner is renting the home?
