An HOA Can Foreclose?

Did you know that homeowners associations have the right to foreclose in Texas?  Many homeowners do not know this! I am here to explain how & why in this short video.

Did you know that homeowners associations have the right to foreclose in Texas? That’s right, but there are some key things to know.  First, an HOA can only foreclose for unpaid dues, not for fines.  So if you rack up big fines from keeping your garbage cans out or not mowing your lawn, you have a problem but it won’t result in foreclosure.  Second, when a HOA forecloses, the owner has a right of redemption meaning they can pay the HOA whatever is owed after the fact and get the property back.  For a condo, that right exists for 90 days and for regular HOAs, it is 180.  Third, the HOA can foreclosure even if the owner has a home loan.  However, whoever buys the home at the foreclosure sale on the courthouse steps, either the HOA or a third party, they are now responsible for the paying the loan otherwise the lender will foreclose on them.   I’m Craig Smyser with 1835 Realty.