You might think that a foreclosure is only possible if you fail to make mortgage payments. However, members of homeowners associations can run into this issue regardless of their home loan situation. Exactly how can an HOA take your home if it’s paid off? 

The legal team at Cozmyk Law explains the process in this guide. Contact our office if you need an experienced foreclosure attorney in Cleveland, OH, to advocate for you.

Mandatory Payments for HOA Members

Say you purchase a house or condo that belongs to a homeowners association. In addition to your monthly mortgage payments, you’ll likely have to pay HOA fees that go toward community amenities, such as:

• Landscaping maintenance
• Snow removal services
• Property improvements and general upkeep

The HOA expects every property owner to pay these fees, also called assessments. If you fall behind on your payments, the association has the right to place a lien on your property, which essentially kickstarts the foreclosure process. 

Understanding Property Liens and Foreclosures

Many foreclosure FAQs involve questions like, “What is a property lien?” and, “Can an HOA take your home if it’s paid off?” It’s important to understand the terminology and legal process surrounding foreclosure. 

What Happens If You Face a Property Lien?

A lien refers to any penalty a property owner faces for accumulating debt against their creditor. If you have an outstanding home loan and miss several mortgage payments, your lender can record a lien with the county records office. Your homeowner’s association can also enforce this penalty if you fail to pay your HOA fees. 

Liens attach the creditor to your property and give them the right to remove you from the property with a few exceptions:

• You pay off the debt.
• You arrange a repayment plan. 
• The statute of limitations passes on the lien. 

How Lien Priority Affects Foreclosure Actions

If your home loan is paid off, you don’t have to worry about a mortgage lender putting a lien on your property. However, the homeowners association can penalize you for missing fee payments, as can the IRS for unpaid property taxes, and even contractors who work on the house. Tax liens take priority over HOA liens, so your focus should be repaying your taxes to avoid foreclosure. 

Consult With a Foreclosure Attorney About Your Rights – Contact Cozmyk Law

Not only can an HOA take your home if it’s paid off but the process can move fairly quickly. The attorneys at Cozmyk Law are here to help when it comes to understanding foreclosure timelines and taking steps to keep your home. Connect with us today to discuss your legal situation and receive helpful advice. 

To schedule a free consultation, submit our online contact form or call Cozmyk Law at (216) 452-9145.