How to Deal With Claims & Homeowners Associations
Approximately 64 million homeowners are under the governance of a homeowners association and more than $41.5 billion in fees and dues were paid in 2010, according to the Community Associations Institute. A homeowners association can claim a lien on a property that it governs if those dues aren't paid, causing trouble for the owner of the home down the road. The lien claim will prevent a homeowner from taking any legal action pertaining to the property in question, including refinancing or selling the property. The lien claim should not be ignored since it could lead to foreclosure by the association.
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Instructions
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Retain the expertise of a real estate attorney in the event of a large or confusing lien claim, which will protect the interest of the property owner. Document all correspondence via email communication. Remember that this is a legal matter, and anything communicated via written word will hold up in a court of law.
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Obtain a copy of the lien claim filed by the homeowners association in the county public records. Determine that all claims within the lien are valid and accurate.
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Contact the homeowners association and request the name, phone number and case number of the legal counsel it has retained to handle the specific lien claim. Email the association's attorney and request a payoff demand statement containing all accrued association charges and attorney's fees.
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Go to the bank for a cashier's check in the amount that the association's attorney has demanded for payment in full. Send the check with a copy of the demand letter via certified mail, or through an overnight carrier which provides detailed tracking information to the association's attorney.
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Follow up within a week to confirm that payment has been received and a release has been filed with the county recorder to clear the lien claim from the subject property.
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References
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