The relentless COVID-19 pandemic caused financial stress for millions of households in the United States, to put it lightly. Many homeowners and condo owners are struggling to keep up with their mortgages and other bills, and they must prioritize their financial obligations. This often means that owners who are part of homeowner associations (HOAs) might fall behind on their dues.
When owners fail to pay dues, HOAs can face financial stress of their own. What is the best course of action? Should an HOA foreclose on owners who are already facing devastating financial challenges due to circumstances beyond their control?
HOAs do not have to foreclose on their owners because of unpaid dues, as there are other courses of action. HOAs have the ability to place liens on the homes of delinquent owners. This ensures that the owner must pay the HOA but does not require immediate foreclosure. Foreclosure can be put on hold until the owner is able to pay, and then they might negotiate a repayment plan with the HOA. This way, owners keep their homes, can find some financial relief during the pandemic, and the HOA can ensure it will get its dues in the future.
If the HOA needs additional funds to cover expenses in the meantime, the board can vote to use reserve funds and replace them once the dues are paid. If an owner can afford to pay and still refuses, the HOA can then take legal action if needed.
Contact a Calabasas HOA Disputes Lawyer
The Law Offices of Alan J. Carnegie, APC, represents both HOAs and homeowners in disputes over a variety of issues. Contact us online or call 877.261.4456 to speak with a Calabasa HOA conflicts attorney to learn how we can protect your rights in your dispute.