Do Texas POAs have any involvement in third-party foreclosures?

That may depend on who's doing the foreclosing, so once again, this is a legal question you may need to put to an attorney if you're thinking of a specific house. If you're wondering what they do in your state, try your search again, such as "third party foreclosures Texas" - that's what I did, so you can start with this:

https://lonestarlandlaw.com/foreclosure-in-texas/

You may have to look through several sources to piece together the answer and you'll still probably come back to "it depends."

My primary question is whether the HOA has a lien against the house. Usually, we let the mortgage company do what it do instead of us spending the money to foreclose - they've already done a search for other liens and likely know about ours. If you're lucky, and the house is sold, there may be enough money after the mortgage company gets theirs to pay off the HOA. If the homeowner tries to head things off by filing for bankruptcy, the HOA can file a proof of claim with the court and then stand in line to get its money.

However, people who owe back taxes usually haven't paid the HOA, the mortgage company, and who knows who else, and the government will get their money before anyone. There should be an announcement in the paper regarding the sale or you can check with the county, and then the HOA will have to decide if it wants to take the house by paying off the taxes. Throughout all this, the homeowner still has a chance to pay off the back taxes and other liens.

We have had experience with one such foreclosure as the management company in a Texas Property Code section 209 HOA. The local ISD brought the foreclosure action due to unpaid taxes.

The Association and management company had no involvement except as a recipient of copies of the paperwork which was filed. We kept the Board advised, and recommended consulting with the association attorney who told the Board they could sit back and do nothing.

So, no, there was no direct involvement at that point. I do not recall the amount of past due assessments and legal expenses the Association was owed, we advised the Board that amount would have to be written off.

Out of curiosity we attended the foreclosure hearing. Somehow the attorney for the ISD thought we looked like reputable citizens (HA!) and asked what we were doing there. When we told her we were the management company for the HOA, she proceeded to have us sit with her at the Plaintiff's table, she introduced us to the Judge, who then asked that I be sworn in to answer questions. It was all rather informal, not like our corporate experience as expert witnesses testifying before public utility commissions in a number of states--no witness prep, no filed testimony and documents, no blown up exhibits of portions of our testimony prepared by opposing counsel.

Ultimately, the family of the owner, who was a citizen of a country in the Middle East and who had died there, stepped in, paid all the amounts owed, stopped the foreclosure, and sold the property.

When I was on the Board in Virginia, I recall receiving notification that a property was being foreclosed on by a bank but it was simply a notification. The Association had nothing to fill out, etc.

A bank gets paid first and foremost in any foreclosure. Even if the HOA does it. There are a few states that have "Super liens" that will put the HOA on the same level as the bank. However, that still has to mean you "split" any if any funds that are left over to pay what is owed. Which most of the time there isn't. It's like sharing a "zero".

Your best bet is if you have a property that owes you dues at a set point, then file the lien. The bank may pay the lien off or in some states the new owner. (Florida only one I know that does this). I would avoid doing any foreclosures on any property that is in bank foreclosure process or in Tax foreclosure.

Death and Taxes are assured in life. If it's a tax foreclosure it's most likely going to end up as one of those "HUD" foreclosures. Which are how those people on TV make their money by flipping houses. Long story but not every house that is foreclosed on is the type a home flipper gets rich off of. They look for the ones with the tax foreclosures.

Place a lien if money is owed the HOA. Don't expect to get a dime. Just follow the process to make sure your HOA can deal with doing the process.