Are you being sued by your HOA? These lawsuits may involve just a demand for a money judgment, which the HOA's lawyers may try to collect by garnishing your wages or a bank account, or they may be asking for a judge to force the sale of your property to pay for their bill.
An HOA's right to foreclose is limited. Generally speaking, an HOA cannot foreclose unless an owner is either one year or $1,200 behind in assessments. The calculation of these amounts often can turn on the misapplication of payments, the failure to properly account for all payments, or a self-serving description of what constitutes an “assessment.” In one particularly noteworthy case, an HOA billed the owner thousands of dollars in attorneys’ fees, called them “assessments," and then initiated a foreclosure action based solely on the failure to pay attorneys’ fees. We were fortunate in that case to stop the foreclosure.
We are not suggesting that every foreclosure action, or even a majority of foreclosure actions filed, suffer from such obvious defects. But sadly not every foreclosure lawsuit conforms to the statute. In addition, if you were unfortunate enough to fall behind in your assessments, there are strategies for avoiding the loss of your home while at the same time fulfilling your obligations to your HOA.