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How to Defend Against an HOA Foreclosure Part 2

When your neighborhood homeowners’ association (HOA) tries to foreclose your home without your consent, it’s natural to experience feelings of anger, confusion, and even sadness. Nobody wants to lose their home, especially when a third party strips you of your power to fight the machinations seeking to take what you feel is rightly yours. When aggressive HOAs try to foreclose your home, you might be thinking to yourself “I need to sell my home fast in Raleigh, NC.” Always remember that you have more than one option for dealing with a pesky HOA.

Are you going to stand and fight? Or are you going to cut and run? Whether you decide to part ways with your home or not, it’s important to understand the limitations of HOA power that we began discussing in part one. In part two of this two-part series, we will examine the strategies you can employ to defend your home against an HOA foreclosure.

The CC&Rs Don’t Support the Assessments

Your neighborhoods’ covenants, conditions, and restrictions (CC&Rs) are like a rulebook that dictate the responsibilities and duties of all residents and the HOA. If the HOA tries to assess charges that aren’t outlined in the CC&Rs, you can argue that you had no reasonable way of knowing what fees and other expenses you were expected to pay. HOAs that initiate foreclosure on the basis of an unauthorized lien will be rejected in a court of law.

Misclassified or Otherwise Misrepresented Payments

Payments requested by the HOA must be applied to assessments before other types of debt, such as fines. If the HOA in your neighborhood applied payments to the wrong category or used funds from payments to satisfy debts in the wrong order, you may not be responsible for fulfilling the assessment lien thus preventing your home from being foreclosed.

Improper Recording of the Assessment Lien

The rules dictating the lien for assessments varies from state to state, but in many states, the lien must be recorded properly in accordance with state laws. Some HOAs fail to record the lien at all due to negligence, or they fail to observe the rules governing your state. In either case, you can bolster your defense by bringing the HOA’s noncompliance to the attention of the judge.

You can bring a wrongful lien claim against the HOA if they fail to properly record the assessment lien on your property. In some states, you can be awarded a minimum of $5,000 in damages, and that doesn’t take into account any attorneys’ fees or other costs.

If a foreclosure has you thinking “I need to sell my house for cash in Raleigh, NC,” Real Estate Solution Providers can help you broker a deal fast.

For more information on how to sell your house for cash in Raleigh, NC, please submit our contact request form.

Disclaimer: This website is not a substitute for legal advice. If you have a serious legal, tax, or other issue requiring professional advice, please consult with an attorney or CPA.

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