Can I be foreclosed on my Houston TX House by My Homeowner’s Association (HOA) ? Does my HOA have right to do an HOA Foreclosure on my house?
YES A Homeowner’s Association (HOA) can foreclose on your house! And they can Foreclose and have Foreclosed on Texas houses with just a few thousands or less of HOA fee’s past due! Be aware on an HOA Foreclosure!
Be very, very careful with your HOA fee’s make sure they are always paid on time. An HOA can absolutely foreclose on your home the same way the bank can foreclose on you for a delinquent mortgage or the city can foreclose on you for back taxes! Stop foreclosure in Houston now.
Losing a home is often one of the most devastating events in a person’s or family’s life. Unfortunately, it often comes after a sudden job loss, medical emergency, or family tragedy. If you happen to be in this situation due to Unpaid HOA, Condo Fee’s or ANY other reason, read the article below and take steps to familiarize yourself with the foreclosure process in Houston, TX.
If it happens to be that an HOA tries to Foreclose on your property make sure you know your rights and have options set up to sell the home if you need to if they try an HOA Foreclosure on you:
Judicial vs. Nonjudical HOA Foreclosure
Judicial Foreclosure means that the HOA foreclosure will happen through a court process. This usually happens because the HOA does not have a power of sale provision in the documents you signed when purchasing the home.
However, this power of sale provision is almost always included in newer HOA’s , and many times the HOA will have the right to HOA foreclose nonjudicially (without court intervention and without having to file a lawsuit).
The following procedure pertains to a nonjudicial foreclosure. And it is of utmost importance to pay your HOA to stop foreclosure in Houston TX! In Texas all HOA documents I have seen allow the HOA Foreclosure without going to court.
20- Day Notice
In Texas , the HOA must send you an invoice that lists the due and owing amount at least 20 days prior to posting any Notice of Sale. This notice not only states the amount that you but also should provide an opportunity to “cure” or payoff the amount due.
This can come in the form of letters in the mail asking for payment. Sometimes they may include pictures of your overgrown lawn or wrong color door, etc..They need to give you this before they start HOA Foreclosure.
If you get this letter ACT now pay off the HOA fee’s ! You do not want an HOA Foreclosure. If you simply can’t pay the HOA fee’s or they have gotten too big, start the process of selling the home now before it is too late and you do get foreclosed and get nothing for your house.
21- Day Notice of Sale
If you do not pay off the amount in the letter you got in the mail, or email with HOA fee’s, etc….., the HOA must give you a Notice of Sale at least 21 days before the sale of the home.
After that the home can be listed for sale! It will usually be listed at lesser amount than fair market value so that they can sell quick and get their money.
Depending on what the home sells for will depend on whether you may still owe the HOA more money, or put a few dollars in your pocket.
- Redemption Notice
The HOA must send you and any and all lienholders a redemption notice within 30 days after the sale date which will state your current rights and report the results of the sale, to be sent via certified mail.
The HOA is also required to file with the county an Affidavit stating their compliance of the redemption notice. “Redemption” is the right of the former owner to buy back his home and this right is intact for 180 days after the redemption notice is sent.
So if this did happen you would have a LOT of extra legal fee’s but you MAY be able to buy your home back from them after an HOA Foreclosure.
What if I just owe fines but I pay all my dues? Can I still have an HOA foreclosure on my Houston House over something as simple as tall grass fines? YES!
As stated on NPR in this article about a homeowner that was foreclosed on by his HOA. “In theory, HOAs are only supposed to foreclose for nonpayment of dues. But Solomons says that through a loophole in Texas law, in practice, HOAs can foreclose for nonpayment of HOA fines, too. Solomons watched with frustration last year as his reform bill died in the Senate.”
Can HOA foreclosure happen over small amounts of unpaid HOA dues or Fines? YES! One family even lost their home because of a $120 HOA arrearage!
*You should always consult with an attorney to thoroughly review your rights and options as specific cases may vary. This is just my opinion due to my experience and not to be used as Legal Advice. But know that it is in your hands to stop HOA foreclosure and that selling to us fast at 713 Property Buyers is an option!