When most people think about the foreclosure process, it is widely known that the lender foreclosing on your home is the most common type of foreclosure. But, you can also get foreclosed on by your Homeowners Association. If you neglect to pay the required fees or assessments to your Homeowner’s Association, they could potentially foreclose on your home. If you find yourself in this situation, there are a few defense strategies you should consider.
Misapplication of Payments
Aside from your monthly payment, Homeowners’ Associations are generally required to apply your payments to assessments before anything else. As a result, an assessment lien and foreclosure may be considered invalid if it is discovered that your HOA applied your payments inappropriately such as to fines or to any category other than assessments. If you are in foreclosure with your HOA, one of the first things to check is how they are applying any payments you might have made.
Assessment liens might also be considered invalid due to accounting errors made by your HOA. If you have reason to believe that this is the case, then your Homeowners’ Association is required to show how any and all charges were calculated. This includes fines, assessments, interest, and more. If any of these amounts are incorrect, you may be able to fight your foreclosure.
In some instances, an HOA may issue charges that haven’t been approved by the CC&Rs (Covenants, Conditions, and Restrictions). If this is found to be the case, then the lien and foreclosure would be completely invalid.
Consult With an Attorney
While these are some of the more common defenses against an HOA foreclosure, there are many other defense strategies that may apply to your situation. There are many factors to consider when developing a legal strategy. As a result, it is important that you consult with an experienced real estate and foreclosure defense attorney. The Law Offices of Alexander Borell has practiced foreclosure defense and real estate since 1989and offers free a free consultation to people in foreclosure in Miami, Tampa, Orlando and West Palm Beach.