Consistent payment of assessments is critical to community management. When owners default, collection and foreclosure actions become necessary tools to recover funds, maintain equity among residents, and ensure uninterrupted operation of association services.
Leveraging Liens in Collection Efforts
Homeowners' Associations and condos have the right to record liens for unpaid assessments. This legal action puts third parties on notice and effectively blocks sales or new financing until the amount owed is paid in full.
The Role of Foreclosure After Filing a Lien
While recording a lien is important, it may not lead to collection. Boards should be prepared to pursue foreclosure, which, like a mortgage lender’s process, enables recovery through the court system or sale of the property.
