TN Super lien

Started by GlenM4 • 6 replies • 1084 views

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GlenM4 (Tennessee)
Posts: 141

Posted:

There is a house in our subdivision that is about 2yrs behind in dues. They are about to foreclose So if we put a lien on it now , its seems pointless as we wont get any of the funds when the house is auction (unless somehow it sells for more which it wont)

I saw something about Super liens but i think its only for condos? Anyone have any info on these and if HOA can use a super lien?

Thanks
Glen

TimB4 (Tennessee)
Posts: 21,062

Posted:

You could take the issue to the court and obtain a judgement (court saying money is owed).
You can then take this judgement and garnish wages, etc.

MelissaP1 (Alabama)
Posts: 13,836

Posted:

A Super lien just puts you on the same footing as the bank. Normally, in a foreclosure of a Lien the bank gets paid first and foremost. A super lien (Not available in all states) would allow you to share the spoils with the bank if there were any so to speak. Which in reality there isn't if the bank is foreclosing. HOA foreclosures are basically stopping the bleeding more than anything else if the bank isn't foreclosing.

I would still file a lien ASAP. Most likely won't see a dime but that's not necessarily the important part. It shows that the HOA means business and doesn't let people "slide". We had a policy of 6 months behind we lien. 1 year behind we CONSIDER foreclosure. Factors plays in each situation.

If your HOA is strapped for cash, then it may not be beneficial at this time to file a lien. However, in the future let this be a lesson to catch it sooner if possible.

Former HOA President

LetA (Nevada)
Posts: 2,679

Posted:

A super liens here in Nevada puts the HOA at the front of the line before the bank. There has been some shady dealings with HOA's and super priority liens
that the state 9th circuit court ruled that the the first mortgage can't be extinguished in an HOA foreclosure sale NRS 116.3116

Foreclosing only stops the bleeding and usually never recovers the assessments that was never paid.

You can foreclose ahead of the bank, however If you slap a lien on the property the bank, at least here in Nevada is required to to pay in full the assessments in
the rears along with any and all fees.

JohnC46 (South Carolina)
Posts: 14,265

Posted:

I understand a "Super Lien" to be the top dog lien, first paid, etc.

GlenM4 (Tennessee)
Posts: 141

Posted:

For TN it seems to be just for COA and not HOA

JanetB2 (Colorado)
Posts: 4,219

Posted:

Quote:

Posted By GlenM4 on 04/17/2018 9:36 AM
For TN it seems to be just for COA and not HOA

I am reading the same when looked up info. My info noted with regards to super lien:

In Tennessee, six months worth of delinquent common expense assessments have super lien status (Tenn. Code Ann. § 66-27-415(b)(2)).

However, it notes is with regards to COA’s and that HOA’s need to refer to their governing documents regarding ability to place liens.

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