These days, not being an HOA member makes you the odd man out. Across the US, almost 400,000 HOA community associations exert control over about 40 million US households.
When the HOA can fine you through the owner portal for having grass an inch too long, there's no doubt they are incredibly powerful organizations. But they have even more power than that. Your local homeowners association can foreclose your home in extreme situations.
What is HOA foreclosure, and how do you prevent it? Today, we discuss this uncommon legal situation in Naples, FL.
What Is an HOA Foreclosure?
Normally, foreclosure is when homeowners fail to make their mortgage payments for too long and go into substantial debt. The bank needs a way to recover their investment if necessary. Foreclosure is the sale of the home by the lender to recoup the debts for the property.
An HOA foreclosure, however, has nothing to do with your mortgage. In fact, you can be paying your mortgage off in a timely manner and still suffer an HOA foreclosure. Instead, this is when you fail to pay HOA dues and HOA assessments.
When Does an HOA Foreclosure Happen?
Granted, this is an extreme measure that only comes as a last resort. You won't get an HOA foreclosure notice out of nowhere. Your association manager will warn you of unpaid dues and you'll receive scary letters in the mail.
If months go by and they can't get you to pay, then they will turn to a lien. That is, they hold your property against you until you pay off all debts. When that doesn't work, they turn to the ultimate last resort: HOA foreclosure.
How to Avoid HOA Foreclosure
Naples, FL owners still have recourse even if their local HOA association kicks off an HOA foreclosure.
The easiest and most straightforward way to strike down an HOA foreclosure is to pay your dues. Many people get into their heads the false idea that the HOA has no power as long as they pay their mortgage. This is simply not true.
Even if you have reached the foreclosure stage, pay off your debts for dues and assessments in full. This will return you to good standing with your HOA and let you sleep at night.
Seek Legal Assistance
Beyond that, your options are limited. You could consult a lawyer, who, upon investigation, may discover the HOA stepped over the line. Somewhere, there may be a regulation or law that protects you from this overreach.
Sadly, the latter is unlikely to happen. Since you signed an agreement with the HOA before moving in, you granted them this power. You agreed to pay those dues, and now they're holding you to your word.
Find Out More Through Your Owner Portal
An HOA foreclosure is your local HOA's attempt to recover unpaid dues and assessments. It's a last resort after the HOA has exhausted all other means of recovering the debt. The best solution is to pay it in full, though legal help may provide other options.
PMI Gulf Coast in Naples, FL is your friendly, locally-operated property management office. We have over 20 years of association management experience. Get in touch with us today to get access to our state-of-the-art owner portal and top-notch services.
