HOA lien
Also called: Assessment lien
An HOA lien is a claim against an owner's property that secures unpaid assessments and, where the documents and state law allow, late fees, interest, and collection costs. In many states the lien arises automatically under the CC&Rs or statute; the association then records a notice of lien with the county to make it public and enforceable.
Because title companies find recorded liens, the debt normally has to be paid off before the home can be sold or refinanced. In some states an association can ultimately foreclose on its lien, but statutes increasingly restrict that remedy — minimum balances, waiting periods, notice letters, and an offer of a payment plan are common preconditions.
Liens are a last step in collection, after reminders, late notices, and a genuine attempt to set up a payment plan.
Read more
- How to collect overdue HOA dues without making it personal
- HOA payment plans: when to offer and how to structure