Living in an HOA offers several benefits for residents, such as onsite amenities and good home values, but these perks come at a price. Every year, Georgia's HOA residents contribute more than $4 billion toward the upkeep of their communities.
HOA board members collect these funds through annual or monthly HOA fees, which homeowners must pay to remain a part of the community. Those who don't pay their fees on time risk having an HOA lien placed on their home and can ultimately face property foreclosure.
Read on to explore the most important facts about HOA foreclosure that every community member needs to know.
1. Unpaid Fees and Fines Lead to Foreclosure
All community associations in the USA are run according to certain HOA regulations, known as Covenants, Conditions, and Restrictions (CC&Rs). Residents must comply with these rules to ensure everyone enjoys equal access to the benefits of living in an HOA.
HOA fee payments are an important part of these regulations, but they also include architectural guidelines and rules for using the onsite facilities. Those who disregard the homeowner association rules may be fined.
In Georgia, outstanding fines can trigger an HOA lien and lead to foreclosure when the lien amount exceeds $2,000. An HOA can foreclose on property owners' homes even if their mortgage payments are up-to-date.
2. The HOA Board Must Follow a Procedure
An HOA cannot foreclose on a home unless they've allowed homeowners the opportunity to settle the past due amounts according to procedures outlined in the CC&Rs. They must usually take the following steps when following up on past-due fees and fines:
- Call or email the homeowner about the past-due amount
- Allow the homeowner an opportunity to set up a payment arrangement
- Send a registered letter requesting payment
- Employ a collection agency to recover the amount
The HOA board must pursue every available avenue before commencing with an HOA foreclosure.
3. You Can Avoid HOA Foreclosure
Paying the past-due amount is the only way to avoid HOA foreclosure in Suwanee, GA. Homeowners who can't pay their fees are advised to seek HOA legal advice to avoid losing their homes.
When your HOA board contacts you about past-due payments, it's best to set up a payment arrangement with them and stick to it. Don't avoid the issue; open communication makes all the difference when managing past-due bills.
Effective Property Management Can Help Prevent Foreclosures
An experienced property management company can assist HOA boards in preventing foreclosure with effective fee collection methods and impartial administration of fines. These experts ensure an HOA carries out these complex proceedings within the bounds of the law to ensure fair treatment for everyone involved.
PMI Reliance is a leading Georgia property management company specializing in navigating the complexities of managing HOA communities. We are adept at managing the HOA foreclosure process fairly and take great pains to help HOA boards and homeowners avoid the problems associated with overdue fees.
Discover a stress-free way to take care of your Suwanee community when you sign up with us.
