Real Estate & Property Law

What If I Can't Afford To Pay My Assessments? What Can Happen?

This is a question I am hearing way too often these days. These are truly desperate times. On the HOA and Condo side, and on the individual owner's side.

Question: I am strapped with expenses and can barely manage my mortgage, what will happen if I don?t have monies to pay my HOA dues?
Answer: The likely answer (as always, it depends on what the HOA or Condo documents say of course), is that the Board can probably initiate foreclosure (judicial or nonjudicial), or sue the owner responsible for the assessments personally - for the unpaid assessments and collection costs which will be substantial if the collection matter is protracted.

The CC&Rs for the association should clarify the rights and the remedies and the association should also have circulated a collections policy that defines the rights and remedies for the association, and the rights for owners.

If you stop paying, expect collection costs to be added to the debt. It is not a good situation. Wish I had a better answer, for both sides. When one owner does not pay, the others end up paying more.

Full post as published by California Condo & HOA Law on April 15, 2009 (boomark / email).