There's no doubt the HOA holds powerful sway over American homes. As of 2021, almost 400,000 HOA associations exist in the US. That represents a jaw-dropping 40 million American households.
The HOA has the power to enforce everything from what color you paint your home to how late you can have parties. But they also, believe it or not, have the power to foreclose your home in Houston, TX. This is known as an HOA foreclosure.
What is an HOA foreclosure exactly, how does it happen, and how do you stop it? Read on as we answer these questions and more in today's article about Houston, TX, foreclosures.
What Is an HOA Foreclosure?
When you buy a home in an area with an HOA, you agree to live by their rules and pay their dues. Signing the HOA contract gives them the power to evict you, if necessary. This isn't a risk to you provided you obey the rules, pay the dues, and keep your head down during HOA meetings.
Strangely, foreclosure can still happen even if you pay your mortgage on time or have the home in your name. Foreclosure usually happens when you default on multiple monthly mortgage payments.
In this case, with the HOA, foreclosure happens when you "default" on your HOA fees. It also includes if you do not comply with paying the HOA assessment.
This will be a judicial or non-judicial civil action in Houston depending on whether it's a home or condo. HOA foreclosure is usually the last resort after HOA managers in charge have tried all other options.
HOA Foreclosure Process
Before turning to HOA foreclosure, your local HOA will try less invasive methods of getting you to pay. They will send you scary notices, or visit you in person.
If that doesn't work, then they will put a lien on your house. A lien, in layman's terms, gives an entity control over a property until the original owner pays their debts. HOA managers must serve this lien to you as a legal document before it goes into effect.
All you have to do is pay your debts and the lien loses effect. Failing that, the HOA will initiate a foreclosure. They will sell the house in an attempt to recover your HOA debts.
How to Stop HOA Foreclosure
If you want to fight an HOA foreclosure, you don't have many options. A lawyer could potentially help you if the HOA has broken the law at some point during this process. There may be some provision in Houston law that sides with you against the HOA.
However, the easiest way to fight or stop a foreclosure is to pay HOA fees. Doing so buries the hatchet and returns you to good legal standing in your community.
Prevent HOA Foreclosure Today
HOA foreclosure works similarly to normal foreclosure, but instead, it's the HOA recovering unpaid fees. They'll start by asking nicely, then resort to more extreme methods like putting a lien on your home. The only way to stop this foreclosure, in the vast majority of cases, is to pay those debts.
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