Why do people foreclose their homes?

While most homeowners go into foreclosure because they cannot make their mortgage payment, some enter into foreclosure because they intentionally miss their payments. This often happens when their home is underwater and they no longer have any financial motivation to continue to pay their mortgage.

How does a homeowners association foreclose on a home?

The HOA can foreclose either through judicial foreclosure or a nonjudicial foreclosure, depending on state law and the terms in the CC&Rs. To judicially foreclose an assessment lien, the HOA must file a lawsuit against the homeowner and obtain a judgment from the court granting permission to sell the home to satisfy the HOA’s lien.

Which is worse a bank foreclosure or a Home Owners Association?

Example: I was just served foreclosure papers. If the Home Owners Association says you owe them money, you better pay them. They can foreclose on your home even if you are current with your mortgage. What is worse is they can potentially sell your home for much less than what it is worth.

Can a Hoa lien lead to a foreclosure?

Foreclosures Based on HOA Liens Homes in common interest developments and other planned communities are usually governed by a homeowners’ association. These associations collect fees and assessments from homeowners. Failing to pay fees and assessments can result in a lien that might eventually lead to a foreclosure.

Can a Hoa foreclose if you have a CC & Rs?

An HOA’s CC&Rs will typically outline when an HOA can foreclose and how it should proceed with the process. Though, not all CC&Rs contain a provision similar to this. In fact, some CC&Rs might not give the HOA the authority to foreclose. As such, it is important to review your HOA’s governing documents when faced with a foreclosure. 2.

Can a homeowners association foreclose on your property?

If you don’t pay the required fees or assessments to your homeowners’ association (HOA), typically, the HOA can foreclose your home. But there are defenses to an HOA foreclosure. Once an HOA has a lien on your property, it generally may foreclose that lien.

How does a homeowners association work for You?

These common areas are jointly owned by the development’s homeowners who bear the costs of maintaining, repairing, and replacing them when needed. The homeowners must pay monthly fees (dues) and assessments to the community’s homeowners’ association (HOA) to cover these costs.

What happens to my mortgage after a Hoa foreclosure?

Once the HOA foreclosure is completed, the homeowner will still owe on any mortgage the homeowner did prior to the foreclosure. The HOA does not extinguish the homeowner’s obligations to other creditors.