Homeowner Association Federal Foreclosure Law
A homeowner association (HOA) in some states has the power to foreclose on a home without a judicial decree in order to recover unpaid association fees. These foreclosures are known as nonjudicial foreclosures, according to StopForeclosure.com.
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Power of Sale Clause
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The "power of sale" clause in a deed of trust or mortgage allows the foreclosure of property to pay off an unpaid balance due to a lender or an HOA. This clause states that the homeowner pre-authorizes the sale of the home, according to StopForeclosure.com
Servicemembers Civil Relief Act
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President Bush signed the Servicemembers Civil Relief Act (SCRA) into law in 2003. The SCRA provides military members some protection against foreclosure while serving in the battlefield. The SCRA also offers some mortgage relief, according to U.S. Department of Housing and Urban Development.
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Legal Fees
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If a homeowner contests an HOA nonjudicial foreclosure and loses, he is responsible for legal fees. These fees can be tens of thousands of dollars, according to NPR.
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References
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