Liens in VA

Started by RayC4 • 5 replies • 2011 views

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RayC4 (Virginia)
Posts: 173

Posted:

Any Virginia residents with experience in HOA Liens, etc. Do I read the statute (Va 55-516)correctly in assuming that there is a 'built-in' statute of limitations for executing such liens against a lot owner? It says (to me) that to file the lien, the HOA has only 12 months from the date of the original assessment notice to the lot owner (i.e. "...12 months from the time the first such assessment became due and payable..."

With all the back-and-forth that goes on with personal calls, meetings, warning letters, violation notices, etc, it seems to me that one year is not that much time, and that a lot owner might well 'run out the clock' to escape the threat of a lien. But maybe I do not fully understand the statute. Any thoughts on this issue?

SteveM9 (Massachusetts)
Posts: 3,699

Posted:

File another lien.

SteveM9 (Massachusetts)
Posts: 3,699

Posted:

Quote:

With all the back-and-forth that goes on with personal calls, meetings, warning letters, violation notices, etc, it seems to me that one year is not that much time

If payment is not made within 6 months, simply hand it to a lawyer and foreclose. Problem solved. The one who is moving too slow is you.

MelissaP1 (Alabama)
Posts: 13,836

Posted:

It takes about a year for a bank to foreclose on a house for non-payment. The whole process may take a lot longer but the filing of the intent to foreclose is done within a year. What does that mean to a HOA? Considering that the lien of the HOA is "Second" in line to the bank, it is important the HOA file BEFORE the bank starts it's process. It has a better chance of being paid off and addressed because the owner may want to sell or short sale the house before foreclosure. That means the lien will be part of the sale. Otherwise once the bank forecloses, it's pretty much a wash out.

The HOA does not want to necessarily file a foreclosure before the bank does as well. Only in certain circumstances. It will basically be doing the job of the bank when it forecloses. That is because the bank is paid FIRST and FOREMOST even when the HOA forecloses. Whatever money is leftover if any then goes to the HOA. Foreclosure is just a stop the bleeding method for the HOA for the most part.

Now there is a small caveat to this. There are about 8 states where there are "Super liens". These are liens that are EQUAL to the bank. Meaning the HOA's lien is on the SAME level as the bank. It still does not guarantee any money. However, it does give equal footing in sharing in the money if any does come out of the foreclosure sale.

We had a policy of 6 months behind we liened unless you made payment arrangements. A good policy for keeping those who are going to pay up and those who aren't much better defined.

Former HOA President

MikeS1
Posts: 521

Posted:

In VA - An HOA cannot foreclose like they can in other states. We wish.

TimB4 (Tennessee)
Posts: 21,059

Posted:

Ray,

The way I am interpreting it is that the Association has 12 months from the first time the assessment wasn't paid. Many Associations have an annual amount but it is assessed in monthly installments. Therefore, it's based on monthly payments.

With monthly assessments, even if the clock is ran out, the Association may only be out filing a lien for that one month and not the other months. Additionally, the loss of ability to record a lien doesn't prevent the Association from seeking a judgement against the individual for the full amount and then, if needed, record a lien to collect that judgement.

Associations should check with their attorney if there are any questions.

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