How to Stop HOA Foreclosure

HOA foreclosures can be stopped under certain circumstances.

Condominium are an attractive real estate option for first-time home buyers and older couples looking to purchase a smaller living space. In addition to mortgage payments, many condo owners must pay fees to the condominium board to cover expenses, such as lawn care and upkeep of the condo's amenities. Home Owner Association (HOA) foreclosure occurs when a condominium owner loses his unit because of unpaid dues to a condo association. This type of foreclosure can be stopped to ensure the condo owner does not lose his unit.

Instructions

1. Set up an affordable repayment plan with the HOA. The past amount due could be spread over future payments.

2. Inquire if the monthly condo fees can be lessened. The HOA may lower the payments if the unit's owner cannot afford the price in addition to the monthly mortgage payments.

3. Apply for a small loan from a bank. The bank that holds the mortgage may give an additional loan if the mortgage payments are up-to-date.

4. Refinance the loan, if possible. A home equity line of credit may be possible if the value of the condo is greater than the amount still owed. This money can then be used to repay HOA fees that are past due.

Tips & Warnings

• Hire an attorney. He will have the ability to negotiate with the HOA or determine if any missteps have been taken that would place the HOA at fault.

References

• News 12: HOA Foreclosure
• Foreclosure Fish: Home Owners Association Fees and Foreclosure