Living in an HOA is a popular choice for many homeowners throughout Texas. These communities offer convenient amenities, stable home values, and a wonderful sense of community.
It isn't easy for HOA board members to maintain this harmony, though. Rules and HOA fees are central to keeping things running smoothly.
Those who don't comply with HOA rules or pay their dues are subject to severe penalties. An HOA lien is one of the consequences of not toeing the line in an HOA.
HOA Liens in Texas
It takes a lot of money for an HOA board to keep an HOA property in prime condition. Timely collection of HOA fees is vital for maintaining the community's shared spaces and amenities.
All residents must also comply with the community's rules to maintain property values and ensure enjoyment for everyone. As a result, those guilty of HOA violations are subject to disciplinary action in the form of fines.
These fines form part of the homeowner's liability toward the HOA. If they're not paid on time, they can also form part of an HOA lien.
An HOA may place a lien against a homeowner's property when the past-due amount exceeds an amount specified in the HOA CC and Rs.
If homeowners ignore repeated requests for payment, the HOA can register a lien against their home. This means that any proceeds from the home's sale will go toward paying the lien first.
In extreme cases, an HOA can foreclose on a home to recoup the past-due fees. This is rare in Texas, but it's legal and may take place via judicial or non-judicial means.
How to Avoid an HOA Lien
Under Texas law, HOA boards can't automatically place a lien on a homeowner's property. An HOA lien is a last resort, and they must first take the following steps:
- Send a first notice by first-class mail or email
- Send a second notice by registered mail after 30 days
- Allow the homeowner 90 days to pay any past-due fees
The HOA must allow homeowners to set up a payment plan for past-due fees.
If you're a homeowner who has fallen on hard times, it's important to reach out to your HOA manager as soon as possible to try and rectify the situation. Once the foreclosure process starts, it's difficult to stop it.
HOA managers should make every effort to accommodate delinquent homeowners to avoid ill feelings and disruptions in their community.
Building Better HOA Communities
An HOA management service is an excellent option for community associations that want to maintain harmony within their communities. When homeowners are happy with the service they receive from their board, they are more likely to pay their fees on time.
An experienced HOA manager helps you achieve this and is also adept at managing past-due fees, payment arrangements, and rule infringements. PMI Cross Timbers is your first choice when you need help running your community association.
We are backed by over 20 years of experience with Coppell real estate and can help you avoid the unpleasant HOA lien process. Unlock the secrets of successful community management today.
