Missing Homeowner Dues Can Lead to Foreclosure

Saturday The Seattle Times had a great reminder to those who pay homeowner dues. Many homeowner associations have the power to start the foreclosure process when dues aren’t paid. Read more about this topic at:

http://seattletimes.nwsource.com/html/realestate/2009389563_assocforeclosures28.html

If you are behind on your HOA dues, many cases the mangement company for the Home Owners Association will work with you on payment plans.

It is easy to see why forclosures initiated by management companies have gone up. People in hard economic situations may have to choose between paying the mortgage or paying their HOA dues. Not paying the dues seems relatively harmless. The problem is that the purchase and sale agreement says the homeowner association can haul the homeowner to court and begin foreclosure proceedings for nonpayment of dues. If the house/condo is foreclosed on, it is sold off, and the homeowner association takes what is owed from the proceeds. Proceeds also go to the bank to pay off the mortgage. The attitude of many management companies is, “if you don’t like it move.”