How to File a Lien for Unpaid HOA Dues

Many retirement communities are governed by HOAs

A lien is an encumbrance upon a piece of property which is used to secure a debt. The word lien is French for knot or binding, and a property with a lien against it is said to be "tied up." Liens are governed by state laws, so the procedure for obtaining a lien can vary slightly from state to state. However, the basics steps a Homeowners' Association (HOA) needs to follow to obtain a lien against a homeowner who owes dues to the HOA are similar in every state.

Things You'll Need

• Lien documents

Instructions

1. Send notice of a demand for payment and an intent to file a lien if payment is not received to the delinquent homeowner. Do so at least 60 days before the HOA files for a lien. During this period, the homeowner might pay the back dues he owes or work out an agreement with the HOA to make payments, which would obviate the necessity of filing the lien.

2. Obtain the necessary forms from the county clerk's office where the property is located. Fill out the paperwork and return them to the clerk's office. Usually, the forms can be returned to the clerk's office in person or by mail. If you take the forms to the clerk's office in California, for example, an examiner will review them for completion, collect the stipulated fees and record the document. At that point, the HOA has officially filed a lien against the delinquent homeowner's property, giving it the right to enforce the lien.

3. Enforce the lien after waiting at least 30 days from the recording date. The lien can be enforced by any method allowed by state law. The most common remedy is to foreclose on the property. However, most HOAs prefer to work the homeowner to obtain payment of back dues without going through the foreclosure process, since most HOAs have no desire to obtain ownership of the property.

Tips & Warnings

• Massachusetts attorney Gary Daddario, who handles lien enforcements, says that while obtaining a lien is relatively easy, enforcing and collecting the back dues is legally complex. Accordingly, many HOAs turn to attorneys to handle liens and collections.

• HOA boards should treat delinquent homeowners with respect, says Daddario. If a homeowner isn't paying dues, he might not be paying the mortgage either. If there is a list of creditors, the homeowner is more likely to pay the ones who are treating him with respect and understanding.

References

• SBS Lien Services: Assessment Collections and Fees
• New England Condominium: Keeping Them on Their Toes
• Lawyers.com: Homeowners' Association Assessments and Fees