When can Homeowners Association foreclose?

At the time of this posting there are 20 states in which homeowners associations can have Super Lien priority status.

Click here for a complete list of the states where HOA’s have super lien status.

Even if your state doesn’t provide super lien status for HOA’s and you are considering purchasing a home located within an HOA, it is wise to request a copy of the most current and complete covenant codes and restrictions and you should also request a copy of the last meeting minutes. The minutes should give you an idea of what issues and challenges exist within the HOA that you are considering buying into.

In North Carolina, homes that are located within an HOA and offered for sale by a realtor or for sale by owner should be subjected to additional scrutiny by the buyer. Upon acceptance of the offer to purchase by the seller, a buyer should request a copy of the current CCR’s & by-laws and fully review them before the end of the agreed upon due diligence period. Sadly however, most home buyers fail to review the HOA documents until after they have already purchased the home and received a certified letter informing them they are in violation of HOA rules. If you are considering purchasing a home located within a homeowners association it is best to pay your attorney a few dollars now to review the CC&R’s to make sure you won’t be caught by surprise when you find yourself in violation later!