Unpaid assessments and common charges create financial strain for associations. Through collection and foreclosure, communities can recover past-due balances, enforce payment obligations, and maintain the fiscal health necessary to operate effectively and protect shared property interests.
Legal Options for Recovering Delinquent Assessments
Condominium and HOA boards typically have the authority to record a lien against a unit when assessments go unpaid. This legal tool notifies the public of the debt and blocks sales or refinancing unless the balance is resolved.
When Is Foreclosure Necessary?
Recording the lien is an important step, but it often doesn’t secure repayment on its own. To recover the funds, the association may need to foreclose on the lien, similar to how a bank forecloses on a mortgage loan.
