Getting collection notices or foreclosure notices from your Homeowners’ Association? Don’t fret. This can be handled by knowing your rights and making the law work for you.
Myth: HOAs cannot foreclose and get a property worth hundreds of thousands of dollars, for a mere failure to pay association dues. Fact: It’s quite absurd, but it is true that the HOA can foreclose on your property, and take ownership, regardless of the market value and regardless of whether you owe $500 or $5000!
Changes in the Law: New law went into effect in 2012 that requires HOAs to work with homeowners to get any delinquency cured and requires HOAs to seek a foreclosure through the court. HOAs used to be able to bypass the court system by doing a non-judicial foreclosure.
Must-Know New Protections under 2012 HOA Laws
- HOAs must work with delinquent homeowners to come up with a payment plan that is no shorter than 3 months.
- Collection fees may not be tacked on until a 30 day notice to cure has been provided.
- HOAs must obtain a court order to be able to foreclose.
- Debt must be more than 60 days old before any foreclosure proceeding is started.
- MOST IMPORTANT: homeowners can vote to remove the “power to foreclose” from their HOA’s rules. 67% vote is all that is needed.
My law firm works diligently to hold HOAs accountable by following these new laws. However, if you know your rights, some things can be handled on your own without the need for an attorney. For the specific Bills that created these changes, feel free to email me directly.