It may seem like HOAs are everywhere these days, and that's because they basically are. In recent years, over 80% of newly-constructed homes were built in HOA neighborhoods.
HOAs are a fact of homeownership, which means they have a great deal of power over your property. You've probably heard that they can even foreclose your home - a terrifying thought for such an investment. What is an HOA foreclosure, and is it something you should worry about?
In this article, we dig into the responsibilities as HOA homeowners. We'll discuss how - and why - HOA foreclosures happen in the in Killeen, TX.
What Is an HOA Foreclosure?
An HOA foreclosure isn't like a typical foreclosure with a bank or credit institution. Rather than defaulting on your mortgage, an HOA foreclosure has to do with defaulting on HOA fees and dues. These are the monthly payments that support your local HOA and contribute to local amenities.
Many people are surprised to hear this, but a closer look at your contract reveals that you agreed to it. HOA rules dictate that you must pay your dues no matter what. Failure to do so will lead to potential HOA violations and eventually an HOA lien.
A lien effectively gives control and ownership of your home to the HOA until you pay your debts. It's sort of how a bank technically owns your property until you pay the mortgage. At any time, they can take it back if you don't fulfill your obligations - in this case, fees.
How an HOA Foreclosure Works
Rest assured, this is not a sudden or unexpected result. It's not like you will get an HOA foreclosure if you miss your monthly payment. Rather, this is the result of months and months of non-payment and non-cooperation.
Financial hardship is something you can discuss with HOA management. If you work with them and disclose your situation, you don't risk a sudden eviction.
Should you fail to comply, they will foreclose the home and sell it on the market. Once it's too late, it's too late.
How to Avoid HOA Foreclosure
Luckily, avoiding an HOA foreclosure is as simple as paying your dues. Pay them on time to avoid any kerfuffles. If you can't pay on the due date, then make every effort to catch up and cover late payments, too.
The only exception here is if the HOA payments appear to be incorrect or onerous. Check your contract, talk to your HOA association, and maybe get a lawyer on the phone. Don't just ignore your bills just because you don't want to pay them - or don't think they're right.
Get Top-Notch Property Management in Killeen
HOA foreclosure is when your local HOA association reclaims your home for nonpayment of dues. It's part of your contract, and completely avoidable with cooperation and timeliness. Once the process begins, though, it's too late - unless your lawyer makes a sound case in your favor.
PMI Phantom Realty in Killeen is pushing property management to new levels. We've got over 20 years of experience in this game, and use bleeding-edge tech coupled with peerless customer service. Find out what we can do for you by scheduling a consult today.
