Understanding HOA Foreclosure: What McDonough Homeowners Need to Know

Understanding HOA Foreclosure: What McDonough Homeowners Need to Know

We're at the point where nearly a third of all American homes are situated in homeowners associations.

This may be the case, but that doesn't mean HOA homeowners are happy. Many of Georgia's HOA members report an abuse of power by their associations, some even having to deal with HOA foreclosure.

The HOA foreclosure process usually results from a failure to pay monthly HOA dues, but poor HOA leadership may try to bend the homeowner association rules to fit their case. If your HOA has blindsided you with foreclosure, keep reading and let us help you protect your home by explaining the process and how to avoid it.

Learn the Laws

If your HOA is trying to foreclose on your home, the first step is to do a deep dive into the foreclosure laws in your state. In Georgia, your HOA must first obtain a lien on your home before they can attempt a foreclosure. HOA liens, however, do not take priority over mortgage or property tax liens.

An HOA lien is simply a claim against your property so your HOA can claim unpaid HOA dues. Your association will almost always be able to obtain the lien when you fail to pay your fees. Should you request it, they must provide you with a statement of overdue fees and interest.

HOA Fees and Foreclosure

All HOA homeowners in every state must pay their HOA dues to experience the benefits of HOA living. When you fail to pay your dues, your community has the right to penalize you under the homeowner association rules.

No HOA sets out to get rid of its residents. When you miss a single payment, you'll likely get a reminder or a late penalty at the very worst. It's when you've gone a few months without addressing your overdue HOA payments that the association will make a move to obtain a lien.

If you don't feel your association's accounting is up to snuff, you may be able to fight liens and foreclosures. The HOA will then have to prove their calculations are correct and that you should be punished.

Preventing HOA Foreclosure

It may sound facetious, but preventing HOA foreclosure comes down to staying on top of HOA dues and understanding the community's governing documents. You may feel your HOA isn't giving you enough for your HOA dues, but neglecting to pay them isn't the proper course of action.

If you've got issues with your HOA leadership, it's best to raise these concerns at HOA meetings. Ultimately, the homeowners have the power to make changes in their HOA. This could come in the form of replacing board members to hiring an association management company.

Legal Assistance for HOA Foreclosure

An HOA foreclosure can feel like a monumental injustice when you're a frustrated HOA homeowner. It's important to remember you can always fight a foreclosure by contesting the decision or filing a lawsuit.

You should never fall victim to poor HOA leadership. If you're in conflict with your HOA, you may need HOA property management from PMI Peachstate. We're McDonough, Georgia's top HOA management service, so if you want to get your association on a better path, contact us today to learn how we can help.