What Is an HOA Lien in Galveston, Texas?

What Is an HOA Lien in Galveston, Texas?

Recent data shows there are over 344,000 community associations in the country, serving 73 million residents. Could your Galveston property be next? If so, you need to understand what an HOA lien is before you find yourself facing serious financial and legal consequences.

Read on to learn everything you need to know about HOA liens and foreclosed properties in Galveston-how they work, how to remove them, and how to avoid them in the first place. With the right knowledge, you can protect your property and finances.

What Is an HOA Lien?

An HOA lien is a legal claim that a homeowners association (HOA) has on a property in its community for unpaid dues, assessments, fines, or other charges. It gives the HOA the right to foreclose on the property and sell it to recover the debt.

HOAs have liens because they need the money to maintain the common areas, amenities, and services of the community. If some homeowners don't pay their share, the HOA may not have enough funds to cover its expenses and obligations. This can affect the quality of life and property values of everyone living in an HOA.

How Do HOAs File Liens?

HOAs file liens by recording them with the county clerk's office where the property is located. They must follow the procedures and requirements of the Texas Property Code and its own governing documents. These include the declaration of covenants, restrictions (CC&Rs), bylaws, and rules and regulations.

The board must also notify the homeowner of the lien and give them an opportunity to pay or dispute it before initiating HOA foreclosure.

How Can Homeowners Avoid or Deal With HOA Liens?

Refinancing your mortgage or selling your home before your HOA forecloses on it is probably the most popular way. Homeowners can also avoid or deal with HOA liens by taking the following steps:

Pay On-Time and In-Full

Pay your HOA dues and assessments on time and in full. If you have financial difficulties, contact your HOA and try to work out a payment plan or request a hardship waiver.

Review Your Rights and Responsibilities

Review your HOA's governing documents and understand your rights and responsibilities as a homeowner. If you disagree with any charges or actions taken by your HOA, communicate with them and try to resolve the issue amicably.

Keep Records

Keep records of all your payments and correspondence with your HOA. If you receive a notice of lien or foreclosure from your HOA, respond promptly and seek legal advice if necessary.

Property Management Services You Can Trust

Living in HOA communities offers many benefits, but there are also risks involved. One of them is that liens can jeopardize ownership and compromise the financial security of the homeowner as well as the community. If you need help or more advice on an HOA lien or any other aspect of buying or selling HOA properties, we're here to help.

We're a full-service association and short-term management team in Galveston, TX. Whether you are an HOA community or landlord looking to support your investments, or a tenant looking for your next home, we are here to help with all your real estate needs. Contact us today to learn more.