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Can an HOA foreclose on a home?

On Behalf of | Jul 2, 2024 | HOA Law |

Homeowners associations (HOA) play an essential role in keeping an area pleasant to live in and maintaining high property values. They also offer many helpful benefits to residents.

However, if a homeowner does not pay assessments to the HOA, it may affect the services the association offers and cause problems down the line. Could this prompt an HOA to pursue foreclosure proceedings on the home of a resident?

Texas law allows foreclosure

In Texas, the law allows HOAs to go after homeowners with unpaid dues by placing an assessment lien on their property and initiate foreclosure proceedings. Even so, it is important to note that this is usually a last resort.

In these cases, the HOA must follow the law. When it comes to placing a lien on the property, they must ensure that a homeowner has enough time to pay off unpaid assessments. Therefore, the HOA must:

  • First send a homeowner a notice about the unpaid dues
  • Send the second notice after at least 30 days
  • Finally, file an assessment lien on the property at least 90 days after the second notice was issued

If the situation does escalate to this level, homeowners do have the right to redemption in order to reclaim their home.

It is also critical to note that an HOA cannot place a lien on a property homeowner composed of unpaid fines. These may arise from non-compliance with rules and regulations such as landscaping, decoration, pet ownership and nuisance complaints.

While HOAs can place an assessment lien on a property and seek foreclosure, there may be other ways to enforce the payment of dues to avoid legal problems.