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What if I don’t pay my HOA fees?
Immediate consequences of default in payment
If you miss an HOA payment, you will receive a notification that you did not make the payment. In most cases, a late fee will be added to your amount due. If you do not pay within 30 days, that fine may be increased and your HOA privileges may be suspended. In other words, you may not be able to use the pool or clubhouse. After that, you can assume that the HOA will take legal action against you.
Legal consequences in the event of default in payment
HOAs have several legal options if you want to stop paying the fees you agreed to when you joined the community. The association can file a lien on your property, take legal action against you, or even foreclose your house.
Lawsuits are expensive for everyone. In 2012, a Judges in Tampa, Florida honored homeowners Damages plus costs in a lawsuit they filed against their HOA. The lawsuit arose out of a special valuation of $ 2,212 billed to the couple for lawn maintenance. The process lasted 12 years and was ultimately decided in favor of the homeowner. The homeowners spent $ 222,000 on litigation – most of which had to be reimbursed by the HOA – which cost other homeowners within the complex an additional $ 600 per month over 5 years.
While this is an extreme example of a rampage by HOA and homeowners who have the financial resources to prove a point, it also teaches the cost of legal action and how it can get out of hand.
Consequences of foreclosure in the event of default in payment
Some states have restrictions on when an HOA can initiate a foreclosure on a resident’s property, but in states without restrictions, an HOA can foreclose a home for as little as a few hundred dollars.
Some HOAs may be more lenient and offer payment plans to homeowners who are late with their payments, but you shouldn’t assume that this will always be the case. It is important to read up on all of the association’s rules on late payments and foreclosure prior to joining so that you are not caught off guard by a foreclosure on a $ 200 HOA bill.
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