Around 2 million Washington State residents prefer living in an HOA. That's because these communities offer a host of benefits for residents, including higher property values.
To enjoy the perks of this lifestyle, homeowners must contribute toward the upkeep of the community and abide by certain rules. Those who don't can face serious consequences, such as an HOA foreclosure.
Read to discover more about this process and how to avoid it.
HOA Homeowner Responsibilities
Every HOA has a set of CC&Rs that dictate the homeowners' responsibilities. Paying HOA fees and assessments on time and abiding by community rules are part of these guidelines.
An HOA assessment is usually an extra fee for extensive repairs or upgrades to the HOA facilities. In Washington, the terms HOA fees and HOA assessments are used interchangeably.
If homeowners don't comply with the rules for maintaining their homes and using the HOA amenities, the HOA will issue them a warning. Non-compliance with this warning almost always leads to a fine.
Homeowners must pay any fines owed along with their HOA fees.
The HOA Foreclosure Process in Washington
If homeowners don't pay the amounts due to the HOA, the HOA board, or their representative, will resort to the usual fee collection methods. These include:
- Restricting their access to amenities
- Calling them to discuss a payment arrangement
- Sending letters demanding payment
If the homeowner ignores these collection methods, the HOA automatically gets a lien against the home and can ultimately institute an HOA foreclosure if the account remains delinquent for over 90 days.
The HOA board must unanimously agree to foreclose on a home before commencing legal proceedings. They must mail two preforeclosure notices to the homeowner, and the second one may not be sent less than 60 days after the first.
In Washington State, an HOA may pursue judicial or non-judicial foreclosure, and the HOA lien supersedes all other liens apart from government debt and pre-existing mortgages.
During a non-judicial foreclosure, the HOA sells the property via a third-party trustee instead of the court. In a judicial foreclosure, the HOA files a lawsuit requesting a foreclosure sale. If the homeowner doesn't respond, the HOA wins the case.
How to Stop HOA Foreclosure
A homeowner can fight HOA foreclosure if they feel their HOA has acted unfairly or illegally, or if they have not followed the letter of the law during fee collections or foreclosure proceedings.
The only other way to avoid an HOA foreclosure is by paying the amounts owed before the foreclosure sale.
Avoid Foreclosures in Your HOA
No HOA board wants to undergo the stress and unpleasantness associated with an HOA foreclosure. Hiring an effective HOA manager can help you do this.
Invest West Management's team of HOA managers can help you with timely fee collections and ensure you stay on the right side of the law when collecting past-due amounts. We have over 40 years of experience in real estate and take a hands-on, customer-centric approach to everything we do.
We can help you get your HOA back on track.
