As of 2022, you can expect to pay an average of over $350,000 for a home in the United States. As time goes on, the price of real estate will continue to increase. First-time homebuyers will likely find it more difficult than ever before to find a house suitable for them.
If you happen to live at a property that's part of a homeowners association, there are certain terms you may be unfamiliar with during HOA meetings. One of the most common is an HOA lien.
The good news is that it is easier to understand than you might think. Let's get started with everything you need to know.
So, What Is an HOA Lien?
Simply put, an HOA lien is a claim against a property in order to collect unpaid HOA dues. When an owner falls behind on their dues, the HOA has the right to place a lien on their property.
This means that the owner will not be able to sell or refinance their home until the outstanding balance is paid in full.
What Happens if I Don't Pay the Lien?
If the owner fails to pay the lien, the HOA may eventually foreclose on the property. This is a serious matter and one that you will want to avoid if at all possible. If you are having trouble paying your dues, be sure to reach out to your HOA.
It is much better to be transparent about your situation than to struggle with it on your own.
How Can I Avoid an HOA Lien?
Of course, the best way to avoid an HOA lien is to simply pay your dues on time.
Unfortunately, unforeseen financial struggles can make this difficult for some homeowners. If you find yourself in this situation, the best thing to do is reach out to your HOA as soon as possible to explain the situation and work out a payment plan. With open communication, you can avoid an HOA lien and keep your home safe.
Can an Hoa Lien Lead to Foreclosure?
If you fail to pay an HOA lien, the HOA may eventually foreclose on your property. HOA foreclosure can lead to the loss of your home as well as numerous other issues, such as damage to your credit score.
Be sure that you keep this information in mind so that you can avoid the complications associated with HOA foreclosure.
How Do I Get Rid of an HOA Lien?
If you have an HOA lien on your property, the best thing to do is to pay it off as soon as possible. Once you have paid the outstanding balance in full, the lien will be removed from your property.
As previously mentioned, those who have trouble dealing with this obligation should get in touch with their homeowners association to discuss their potential options.
Don’t Neglect This Term at Your HOA Meetings
Although you may not understand this term, the first time you hear it at HOA meetings, it's more straightforward than you might expect. Ensure that you keep the above guidelines in mind to avoid problems you may have encountered.
Looking for ways we can help you out in the future? Feel free to reach out to us today to learn more.