Is My HOA included in my mortgage?

Condo/co-op fees or homeowners’ association dues are usually paid directly to the homeowners’ association (HOA) and are not included in the payment you make to your mortgage servicer. Condominiums, co-ops, and some neighborhoods may require you to join the local homeowners’ association and pay dues (HOA dues).

How does HOA fees affect mortgage?

If the HOA fails to manage the property well, the lender’s collateral (your unit) could lose value. That makes financing these properties riskier for mortgage companies.

Do you have to be current on mortgage payments for HOA to foreclose?

The HOA doesn’t have to take into account the fact that you’re current on your mortgage payments when it decides whether or not to start a foreclosure. In fact, sometimes starting a foreclosure is a tactic on the part of the HOA to get you to get caught up with your HOA dues.

When do I need to pay my HOA dues?

Ultimately, if you are current on your mortgage, but behind in your HOA dues (and your goal is to keep your home) you should pay the HOA dues or else you may lose your home to an HOA foreclosure.

What happens if you lose your home to a Hoa?

If you’re current on your mortgage payments, it would be quite unwise to lose your home to an HOA foreclosure and hurt your credit due to delinquent HOA dues. (Learn more about how foreclosure affects your credit in Foreclosure and Your Credit Score .)

Can a Hoa foreclose if there is a Super lien?

For this reason, the mortgage lender will usually pay off the super-lien amount to stop the foreclosure and keep it’s mortgage lien intact. So, if you live in a super-lien state, the HOA may initiate a foreclosure because it knows that if you don’t pay, the first-mortgage lender probably will.

What happens when a Hoa files a lien?

Generally, when an HOA files a lien against a homeowner’s property, the HOA sends notice to the homeowner in order to give the homeowner an opportunity to contest the lien or pay off any dues in order to avoid foreclosure.

When does a homeowners association file for foreclosure?

If the homeowner falls behind on the payments due to the HOA, the homeowner may be surprised to learn that the HOA is filing for foreclosure. HOAs have the power to file liens when a homeowner has not paid the required dues or fines, and once this lien is filed, it opens the way for the HOA to file a foreclosure action.

What happens if you owe to a homeowners association?

In return, the homeowner receives communal benefits. In some situations, HOAs can levy fines against homeowners in addition to the monthly or annual fees that the homeowner owes. If the homeowner falls behind on the payments due to the HOA, the homeowner may be surprised to learn that the HOA is filing for foreclosure.