Every homeowners' association in New York comes with guiding rules and regulations.
When issues involving unpaid dues or fees crop up, homeowners can deal with an HOA lien.
Are you facing an HOA lien or want to avoid future problems? Either way, it's crucial to understand the process and how to handle disputes. Read on for a breakdown of five essential facts about homeowner association liens.
1. What Is an HOA Lien?
An HOA lien is, in essence, a legal claim. A homeowners association board can place it on your property if you don't pay HOA dues or breach community regulations.
The homeowner association lien gives the HOA a legal claim against your property. It stays on the property title until you clear the debt.
2. HOA Liens Can Lead to Foreclosure
One of the most concerning aspects of HOA liens is that, in many cases, they can lead to foreclosure if not resolved promptly. Each state has different laws regarding HOA liens. In many jurisdictions, HOAs have the right to start foreclosures even if you're current on your mortgage.
In some states, HOAs have "super lien" status, which means their lien takes priority over even the mortgage lender's claim in certain situations.
3. Handling HOA Disputes Early is Key
The best way to avoid an HOA lien is by staying proactive. If you find yourself unable to pay your HOA dues, it's crucial to communicate with the HOA as soon as possible. Many homeowners associations are willing to work out payment plans or offer temporary leniency if they're kept informed of the situation.
Solving HOA disputes can prevent more serious consequences down the line. If you're disputing an HOA fee, make sure to document everything, including correspondence, notices, and receipts.
4. HOA Fees Continue to Gain Interest and Late Fees
Once an HOA lien is in place, unpaid dues can snowball. In addition to the initial amount owed, the homeowner will often be responsible for late fees, interest, and more.
In extreme cases, a small problem can grow into a much larger debt due to the accumulation of fees.
5. How to Resolve an HOA Lien
If you're facing an HOA lien, the best course of action is to pay the outstanding balance as fast as possible. In some cases, you may be able to negotiate a payment plan with the HOA if you can't pay the full amount upfront.
When it comes to resolving homeowners liens, consider all your options. Depending on the amount owed and the HOA's policies, they may be open to settlement discussions.
You Can Handle Any HOA Lien on Your Property
With the right mindset and strategies, you won't have to worry about an HOA lien on your property.
You can always look to the New York experts who make up the PMI Manhattan Group team. They have the tools, know-how, and resources to handle many HOA matters.
Are you looking for a custom HOA management plan? If so, don't wait to book a consultation with a PMI representative soon.
