What's an HOA Lien?

What's an HOA Lien?

Living in an HOA has many benefits for residents. You enjoy a great sense of community, several convenient amenities, and stable property values. In return, you must pay HOA fees toward the upkeep of common areas and follow the rules associated with community living.

If you don't comply with the rules or fail to pay your fees, the HOA board may charge you fines and late fees and eventually place an HOA lien on your property.

Read on to discover the basics about HOA liens and how they work in West Cobb, Georgia.

HOA Liens in Georgia

Managing an HOA property and keeping it operating efficiently is expensive, so residents must pay their fees and abide by HOA rules that protect the integrity of the community.

Due to this, the HOA board has far-reaching powers when it comes to collecting fees, although they must comply with the Consumer Protection Act. The procedure for collecting past-due fees usually has the following steps:

  • Adding late fees to delinquent amounts
  • Calling the HOA homeowner for payment
  • Sending a letter demanding payment

If none of the above tactics work, the HOA may record a lien against the homeowner's property. They must notify the homeowner about their intention to proceed to this step in writing.

The homeowner may request a statement of the amounts owed. If the HOA does not provide this within five business days, the lien is extinguished.

A lien clouds the property's title, and if it remains unresolved, the HOA may pursue a foreclosure to recoup the past-due fees. In Georgia, foreclosures are non-judicial procedures, which is quicker and easier than a judicial foreclosure.

An HOA can foreclose on a home to recover past-due fees, even if the homeowner's mortgage payments are up-to-date.

Avoiding an HOA Lien

The obvious way to sidestep an HOA lien is by paying your HOA fees on time. However, if they're experiencing financial distress, homeowners may approach the HOA board to ask for leniency or to set up a payment arrangement.

Under Georgia law, an HOA may not institute a lien against the homeowner's property unless the past-due amount exceeds $2,000. So, it is in the homeowner's best interest to pay as much as they can to keep this amount low.

Once HOA foreclosure has commenced, it's impossible to stop the process without paying the outstanding amounts in full.

The HOA board must comply with the association's CC and R's regarding payment arrangements.

Building Happy HOA Communities

The best way to avoid the unpleasantness of an HOA lien is with efficient fee collections and effective tenant communications. When you act quickly to prevent past-due amounts from becoming a burden to homeowners, you can help them stay on track with their payments.

PMI Cornerstone is backed by over 20 years of experience with Georgia real estate. We've helped many HOAs reach their full potential when it comes to fee collections, maintenance, and resident relationships.

Get the information and assistance you need to create a thriving HOA community in West Cobb, Georgia.