Volunteering to serve on the board of a local homeowners association (HOA) is a major responsibility. Board members generally need to attend all meetings. They need to be aware of community standards and maintain amicable relationships with as many of their neighbors as possible. They also have the difficult responsibility of enforcing community standards in some cases.
Sometimes, local homeowners fail to pay their monthly fees to the HOA. Without those funds, it may be difficult to manage the community’s budget for the maintenance of shared spaces and amenities. Other times, the board may need to take enforcement actions because individuals have violated community standards. The HOA may need to assess fees or fines and may then need to hold homeowners accountable if they do not pay them in a timely manner.
In some cases, pursuing a lien against a residence is an appropriate solution for unpaid financial obligations. In more severe cases, the HOA may even need to foreclose on the lien. When can HOAs take legal action against a property due to non-payment?
There is no minimum amount for a lien
Homeowners can theoretically pay off their mortgages and then become complacent about their other financial obligations. They may believe that they don’t have to worry about their HOA fees because they have paid off the loan on the home. However, they’re still bound by a contract with the community and liable if they do not fulfill their financial obligations.
Both unpaid monthly fees and unpaid fines originating from violations of community standards can provide an HOA with grounds to seek a lien. State law does not impose a minimum amount for unpaid fees or fines to be eligible for a lien. Even $300 in unpaid fines can be enough to justify a lien.
In scenarios where property homeowners make it clear that they have no intention of fulfilling their obligations or where they avoid direct interactions with the HOA through mail or in person, financial enforcement actions may be the only way to hold them accountable. Many property owners respond assertively when facing the possibility of a lien against the homes where they live.
They may make whatever financial moves are necessary to catch up on their payments and protect their interest in the property. In cases where they do not take steps to prevent the lien or resolve it quickly, the HOA may have no option but to foreclose on the lien.
Using a residential property as collateral for unpaid fees can be a complex process. HOA boards engaged in collection activity often need help ensuring legal compliance throughout that process, and that’s okay.