Brocker.Org: Arizona HOA Law – When Can Your Homeowners’ Association Foreclose?


Several Arizona house owners are stunned to discovery that Arizona legislation does permit a homeowners’ affiliation to foreclose on a lien towards a house owner in particular predicaments. This is not real in each individual condition and was not the situation in Arizona until finally rather the latest amendments to the Arizona Revised Statutes. In buy to keep away from losing your household to your homeowners’ affiliation, you must understand what legal rights and obligations you have.

Luckily, Arizona legislation does not permit a homeowners’ affiliation to foreclose towards a house owner for unpaid fines. As an alternative, the legislation distinguishes among assessments and fines, allowing for for foreclosure actions primarily based on liens for unpaid assessments, but not fines.

Assessments are outlined as the typical dues that a homeowners’ affiliation costs to preserve the neighborhood. If a house owner fails to shell out this kind of assessments, and if the assessments stay unpaid for 1 calendar year or the unpaid volume exceeds $1,two hundred, the HOA will have a lien on the household that can be foreclosed on. Below Arizona legislation, an HOA’s lien for unpaid assessments attaches immediately, and many house owners do not recognize until finally its way too late just how a lot issues can end result from their failure to shell out.

Fines, as opposed to assessments, are the penalties that HOA’s demand for violations of the homeowners’ association’s CC&R’s or other governing files. Common fines stem from a failure to preserve landscaping, leaving trash cans outside the house, and parking in prohibited locations. Unpaid fines do not end result in an automated lien and have to have that the HOA sue the house owner in courtroom and obtain a judgment just before the lien can be recorded. Even soon after getting this kind of a judgment and recording a lien, however, the HOA are unable to search for to foreclose on the household for unpaid fines.

Notwithstanding the homeowners’ association’s ideal to foreclose on a lien for assessments it normally would not make sense for the HOA to continue with this kind of an motion. Despite the fact that HOA liens have precedence more than many obligations, this kind of liens will usually be secondary to the main home finance loan on the household, so if there is not adequate equity to shell out off the home finance loan and satisfy the lien, foreclosure might not be warranted. House owners must understand, however, that failing to shell out assessments might end result in the reduction of their household, and that HOA’s might pursue foreclosure even when this kind of an motion is not fiscally merited.

The statutes governing the legal rights and obligations of house owners and HOA’s are sophisticated, and house owners going through collection motion by their HOA must get in touch with an skilled Arizona HOA attorney as before long as attainable. In many instances there are merited defenses, but they ought to be highly developed just before an adverse final decision in rendered by a courtroom.