State HOA and COA Foreclosure Laws

If you live in a planned community, whether in a home, condominium, or townhome, you'll probably have to pay dues and assessments to a homeowners’ association (HOA) or condominium owners' association (COA). The HOA or COA can foreclose if you default on the dues or assessments.

Each state has laws governing HOA and COA foreclosures. Those laws set out what types of charges can be included in an HOA or COA lien, how liens are recorded, when a lien may be foreclosed, procedures for foreclosures, and more. For example, in Florida, an HOA can’t initiate a foreclosure until 45 days after providing the homeowner with a notice of intent to foreclose. Similarly, in Florida, a foreclosure judgment can't be entered until at least 45 days after a COA gives the owner written notice of its intention to foreclose its lien to collect the unpaid assessments. 

In some states, an HOA or COA must use a judicial process to foreclose. In others, the association may use either through a judicial or nonjudicial foreclosure. What process a particular HOA or COA will use depends on state law and the association's Covenants, Conditions, and Restrictions (CC&Rs).

Homeowners should understand their rights and the specific laws in their state regarding HOA and COA foreclosures..