Does an HOA have right to take over foreclosed properties?

5-9-2017: Can an HOA and COA Foreclose on your home in Georgia? – YES!. If you default on the assessments, the HOA or COA can foreclose. A common misconception is that the association cannot foreclose if you are current with your mortgage payments. However, the association’s right to foreclose has nothing to do with whether you are current on your mortgage payments. Other conditions and procedures apply but regardless of whether you are or are not current on your mortgage, your HOA may foreclose and sell property to pay the debt…

Apparently it is now legal in Florida and Nevada.  Any update on this case?

12-4-2014 Update to Nevada case – Current Nevada state law gives HOAs a super-priority lien on a Nevada property for up to nine months of unpaid HOA dues. However, U.S. District Court for the District of Nevada held that a homeowners association (HOA) foreclosure sale is not valid against FHA insured loans that were foreclosed (i.e., HUD foreclosures). Source:

Update – 10-15-2014: Nevada Supreme Court decided that a homeowners association can foreclose on homes to recoup delinquent payments. NOTE: About 20 other states also allow HOA liens take priority over first mortgage liens.

Note as of 4-13-2013: Apparently, Dekalb County did to a property originally sold at a sheriff’s tax sale before foreclosure. So what did the Title Insurance Company do about that???? More to come on that one…

What is the HOA supposed to do, just wait for the properties to sell before spending money on property maintenance?

So what about property rights of the bank or investor owner?

This is a serious issue in those complexes with a high volume of foreclosures.


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