Understanding HOA Foreclosure In Dayton, OH

Homeowners Associations (or HOAs) are quite common in planned communities. They help maintain shared spaces and enforce community rules. Homeowners in these communities generally pay periodic fees to the HOA to cover costs. If you fall behind on these payments, it can have serious consequences, including the possibility that the HOA will place a lien on your property and even pursue foreclosure. In this article, the Dayton, OH, HOA defense lawyers at Kohl & Cook Law Firm, LLC, will discuss HOA foreclosures and how to avoid them.

The HOA foreclosure process 

• Delinquency – The process generally begins when a homeowner misses payments. This triggers late fees and potential fines for violating the rules.

• Lien placement – If the debt remains unpaid, the HOA can place a lien on your property. In some states, the lien is automatic upon delinquency. In other states, the HOA will have to record it with the county.

• Notice of intent to foreclose – Before initiating the foreclosure, the HOA is usually required to send a notice of intent and provide the homeowner with a final chance to repay their delinquency.

• Foreclosure proceedings – If the debt remains unsettled, the HOA can then initiate foreclosure, either through a judicial process (requiring a lawsuit) or a non-judicial process (following state guidelines).

• Property sale – If the foreclosure progresses, the home can be sold at a public auction, with the proceeds used to pay off the HOA debt.

Defenses and strategies to HOA foreclosure 

• Paying the late fees – The most effective defense to an HOA foreclosure is to pay your dues on time, make good on any delinquencies, and pay late fees. If you’re facing a tough financial position, you should contact the HOA immediately to discuss potential payment plans and fee reductions.

• Challenging the foreclosure – You’ll want to review the HOA’s governing documents (CC&Rs) to ensure the HOA has the authority to impose charges and pursue foreclosure. You can verify the accuracy of the HOA’s accounting. Inaccurate accounting can be a defense against foreclosure. You’ll also want to ensure that the HOA has followed all state laws and make sure the lien was filed properly.

• Legal and financial options – You have three options. You can file for bankruptcy, attempt to negotiate a repayment plan, or consult with an attorney to fight the HOA.

• Redemption period – Some states offer a “right of redemption” after an HOA foreclosure, which allows the homeowner to repurchase the property by paying the debt and other costs within a specific timeframe.

HOA foreclosure can be a stressful process. As a homeowner, you do have options and rights to defend your home. Understanding the process is the first step in dealing with your HOA. The HOA defense attorneys at Kohl & Cook Law Firm, LLC can help.

Talk to a HOA Defense Lawyer Today 

Kohl & Cook Law Firm, LLC, represents the interests of homeowners in HOA foreclosure cases. Call our Columbus consumer lawyers today to schedule an appointment, and we can begin discussing your next steps right away.