When Should A Homeowner Or Condo Association Foreclose On Its Lien For Outstanding Assessments?

A homeowners and condominium association has the right to file a lien for outstanding assessments or other monetary obligations due from a unit owner.  If still not paid by the unit owner after the filing of the Claim of Lien, the association can “foreclose” on its Claim of Lien just the same as a bank would foreclose on a mortgage.  Many factors impact an association’s decision to foreclose or not such as the cost of initiating and litigating the lien foreclosure action, whether a mortgage foreclosure exists involving the property, the association’s ability to rent the property and expected return once the association completes its foreclosure and takes title to the property, as well as whether the association taking title to the property could reduce the collectible sums payable to the association upon the conclusion of a mortgage foreclosure action.  The totality of these factors needs to be carefully considered in consultation with legal counsel when an association is contemplating proceeding with a lien foreclosure.