Did you know your HOA can foreclose on your home?
A Homeowners Association is something that is almost always a bad thing and can lead to you being charged thousands of dollars in penalties and fines, and perhaps even losing your home in a foreclosure. An HOA will limit your control of your own property, they lack transparency, they have authoritarian restrictions and rules, and the can throw huge fees and assessments at you.
The power for an homeowners association to foreclose on your home is granted through the covenants, conditions, and restrictions (CC&Rs) that govern your community.
If you fail to pay your HOA dues or assessments, the HOA can begin legal action against you. This legal action could result in a lien being placed on your home or a lawsuit against you. Ultimately, these actions could lead to a foreclosure. There are even some states where the HOA can foreclose on your home without going to court which is called a non-judicial foreclosure.
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