Lien Question

Liens are issued for unpaid dues. Although there is one exception. If the HOA pays to remove/fix a violation and the owner does not pay them back, the HOA can place a lien for that money owed. (Rare case and another topic). Those are the two scenerios for lien issuance. Fines work like "speeding tickets" for a HOA and considered more like extra income.

The cost of liens vary with each area. Some require an attorney to file the liens. Other states a lien may be filed for free or a fee by representatives of the HOA. It is best to call the courthouse for the way they handle filing liens. You do not have to have a lawyer on retainer to file. There are some legal places that will charge for the service. A few hundred dollars is the typical amount. That amount is then ADDED to the lien for the total amount to be paid back to the HOA.

Liens notifications are considered "Public" and published in the local news source. In the legals section of the newspaper whenever they publish that. However, the HOA usually sends a certified letter to the owner notifying them the lien has been filed. It goes to the HOA address but a courtesy letter sent to their home if it is somewhere else. The HOA address is the one on record and should always address official correspondence to.

Your HOA should be able to file liens because even individuals have a right to file liens for money owed. So why should a HOA not have the ability file a lien?

Foreclosure of the lien is another long topic. There are similarities between the two. However, foreclosures are just for stopping the bleeding. They rarely ever get money back for the HOA and do most of the work for the bank.

Hope that helps!

There are different types of liens and the requirements for each vary by State.
You need to check your State statutes.

I am not nor do I play a lawyer.

Basically, yes you could file a lien but laws/procedures vary from state to state. Many liens are "paid" in the order they were filed thus the 1st lien is usually the Senior Lien and the 1st paid. In most cases the 1st lien is from the mortgage holder, the 2nd from a refinance, etc. Could the $1,000.00 landscaping bill be the 1st and Senior Lien and as such, force a foreclsure? Yes it could be, but who would lose their home to a foreclosure over $1,000.00? If a foreclosure, short sale, etc. happens, generally the lien holders are paid off in the order they were filed, not the amount they were filed for.

It is possible to hold a lien and the liens are removed (clean title granted) even if the lien(s) were not paid off in a foreclosure. Typical when the owner is in deep financial trouble, you cannot get blood from a stone. Typical in a HOA, they are far down the list of lien holders, they rarely get paid nor does the landscaper/plumber/painter, etc. with the $1,000.00 lien.

When liens are removed and not paid, the debt is not simply forgiven. The one owed can legally persue the person (debtor) that owes them including liening other "things" they own, etc.

Hope this helps.

One thing you need to look for in the CC&Rs is the typical language that the owner is agreeing to a continual lien for the amount of assessments. As I understand it, when this language is in place, the Association isn't placing a lien on the property as one technically already exists based on the deed restrictions. The Association is simply recording the lien for the legal protections a recorded lien provides.