Are you a prospective homeowner who's considering buying one of the 108,000 homes located in HOAs across New Hampshire? Life in an HOA has many benefits, like an enhanced community atmosphere and appealing onsite facilities.
In return, all residents may pay a monthly fee toward the upkeep of common areas in the HOA. Homeowners who don't stay up-to-date with their HOA payments can incur an HOA lien against their property.
Read on to discover the extreme consequences associated with this.
What Is an HOA Lien?
All liens are legal claims against your property due to outstanding amounts. They derive from voluntary situations such as mortgage commitments or involuntary ones like taxes or outstanding HOA fees.
If you have a lien against your property, it clouds the title, making it difficult to refinance your home or sell it.
Outstanding amounts that apply to an HOA lien may include:
- Past-due HOA fees
- Interest
- Collection costs
- HOA fines
Every HOA has a legally-ordained set of CC&Rs. These HOA rules ensure that the HOA maintains its appeal to residents and prospective buyers alike. When you break these rules, it affects all members of the community.
After a few warnings, the HOA board or HOA manager may issue you with a fine for violating the rules. These fines will accumulate if you don't correct your behavior.
If you disagree with some of the rules, you can get them changed by rounding up like-minded residents and requesting that the HOA board amend them.
Avoid HOA Liens on Your Property
The only way to avoid an HOA lien attached to your property is by paying your HOA fees on time every month.
If you encounter unexpected financial difficulties and fall behind in your payments, you must speak to your HOA board as soon as possible. They can assist you with a payment arrangement for the outstanding amounts.
Homeowners who don't stick to their payment arrangement risk having an HOA lien attached to their property. Your HOA will remove the lien as soon as you pay the outstanding fees.
If you don't pay these fees, they may proceed with foreclosure on your home, even if your mortgage payments are current.
HOA Property Foreclosure
In New Hampshire, an HOA has six years to start foreclosure on a property after registering a lien against it.
Once the legal procedure has started, you can settle the lien at any time before it is finalized. In this case, you can save your home from foreclosure.
In New Hampshire, six months' worth of HOA fees have super lien status. Super liens have priority over all other liens when it comes to the proceeds from foreclosed properties.
Effective Fee Management for HOA Boards
Are you a Southern New Hampshire HOA board member who would like to avoid using the threat of an HOA lien to enforce fee payments? PMI Granite State can help you.
We have years of experience managing HOAs to ensure convenience for board members. We can help you set cost-effective budgets and collect HOA fees promptly.
Get in touch if you need assistance with managing your HOA in southern New Hampshire.
