alternative to foreclosure.) The spouses also might consider renting the home and using the income received from rent to pay off the mortgage. In still other cases, the lender might accept a deed in lieu of foreclosure as a way to gain title to the property. To make sure that you understand all of your options in this complex situation, you should consult an attorney who is experienced in issues related to divorce and foreclosure. HOMEOWNER'S ASSOCIATION (HOA) LIENS LEADING TO FORECLOSURE Homes in common interest developments and other planned communities are usually governed by a homeowners’ association. These associations collect fees and assessments from homeowners. Failing to pay fees and assessments can result in a lien that might eventually lead to a foreclosure. The main HOA fee is a monthly or other periodic fee paid for maintenance of the community, such as security, repairs, and landscaping. In addition to this fee, the HOA might require residents of the community to pay special assessments on a one-time basis. These might involve improving a community road or making a major repair to a community building. Some states impose due process requirements on HOA foreclosures. These may provide a minimum amount of debt before the HOA can foreclose or a minimum amount of time to allow the homeowner to catch up on payments.
HOA LIENS
Liens automatically attach to the property of a homeowner who fails to pay an HOA fee or assessment. The HOA may record the lien with the county records office, but this is usually not required. To get rid of the lien, the homeowner would need to pay off not only the missed fees or assessments but also any related penalties, interest, and sometimes fines and attorney fees.
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