Homeowners Association Lien

Is there such a thing as a homeowner’s association lien? HOA liens do exist. Homeowners that live in a contracted society are required to pay a periodic fee to the HOA in order to cover maintenance costs for the area. Fees collected are going to be used for basketball courts, tennis courts, clubhouses, swimming pools, and workout gym.

The HOA typically allocate a budget and divide the overall expenses by the number of homes in the area. This determines the amount that each homeowner must pay to the association. Each homeowner must pay his due on a predetermined basis throughout the year. Moreover, if the homeowners association reserved funds are insufficient, they may impose special assessments for one-time expenses.

If the homeowner fails to pay his share in the monthly fees, a lien would be filed by the HOA. It is then automatically attached to the property of the homeowner. This lien makes the title of the property doubtful, and can be foreclosed in order to satisfy the debt.