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HOA Foreclosures

 March 14, 2018

  HOA Foreclosures are destructive for families and the community associations they live in. Securing a lien and rushing to foreclose on a property for HOA dues is a common practice for HOA attorneys in many states. Such law firms are like mills, churning some families’ lives for personal profit. HOA dues foreclosure is far too common in this country.

  Don’t misunderstand. Foreclosure is a necessary tool in real estate. After all, without the ability to take possession of a property, no one would lend money to buy a home. So it’s a necessity. However foreclosure should be relegated to a position of last resort – just as it was meant to be. Only used when and where no other alternative exists.

How to Collect Delinquent HOA Dues

(image: ShutterStock)

These Families Need Help

  Amazingly, many families find a way to cure the burdensome legal costs and late fees incurred in an HOA foreclosure process and somehow get current. It’s sad to think that a family pressed to the brink of financial disaster, who somehow find a way to pay all that money, can’t be helped by some means long before all those fees and costs bury them. Something must be very wrong when our systems of community supervision can’t reach out and communicate to these families and help them early on.

  When people get behind they get embarrassed. Oddly enough when they have past due HOA fees foreclosure may not be something they even realize is a possibility. So they get busy trying to correct their circumstance, at the same time perhaps avoiding the outside world. So a more exerted effort must be made and reach these families beyond just mailing a few pink letters.

Good communication can go a long way to stop HOA foreclosures. An HOA foreclosure sale sign should be considered failure, a lost opportunity to help someone. Process without compassion. So what should your community do?

What Should Communities Do?

  First off, don’t simply send a few letters. Do more. Actually speak with your delinquent homeowners. Let them know that once you place an HOA lien foreclosure is a possibility – one you’d like to see them avoid. Ask them what their situation is. If they’re in financial difficulty, ask them if they’ve spoken to a realtor about a possible short sale. Absolutely let them know that the one most important bill they must get current on is their HOA assessments; because that bill is as important as their mortgage.

  Helping families understand the close relationship between HOA fees and foreclosure may be a very enlightening experience for them. Let’s be honest; they may not know. After all, how many people actually read all those documents at closing when they buy a home. Probably as many as actually read the ‘terms of use’ before clicking the ‘agree’ box on software updates. There’s simply too much information out there. What’s important is giving people the right information – at the right time.

  Helping families understand the close relationship between HOA fees and foreclosure may be a very enlightening experience for them. Let’s be honest; they may not know. After all, how many people actually read all those documents at closing when they buy a home. Probably as many as actually read the ‘terms of use’ before clicking the ‘agree’ box on software updates. There’s simply too much information out there. What’s important is giving people the right information – at the right time.



  Whenever your Association is having difficulties with delinquent assessments, consider early stage solutions that help recover your needed revenue before defaulting to a lien and foreclosure mentality. Simply click here if you’d like to learn about a no cost credit reporting-based option for your HOA board.


Click here to learn more about how to collect delinquent Community Association dues.

Community Collection Service
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