The legal framework of HOAs in Maryland could change within the near future.
Owning a property in a homeowners association community in Hyattsville comes with many responsibilities. It involves following HOA regulations and ensuring that dues and assessments get paid on time. After one or more missing payments., the association can place a lien on the property.
Read on to learn about four important facts to help you understand how an HOA lien works in Hyattsville.
1. What Is a Homeowners Association Lien?
A homeowners association lien is a legal claim that an HOA can place on your property when you fail to pay your HOA dues, assessments, or other charges. The lien secures the amount owed to the association, ensuring that they can recover the unpaid amounts if you attempt to sell or refinance.
HOAs have the power to place a lien on a property through the authority granted by the governing documents of the association and state law. Governing documents outline the procedures and rules for lien enforcement, including the timeline for unpaid dues. Once the lien is placed, it becomes a public record.
2. How Are HOA Liens Enforced?
In Hyattsville, MD, the enforcement process typically starts with written notices from the homeowners association.
If these payments are not made within the specified time frame, the HOA can file a lien with the county recorder's office. From there, the association has the right to initiate legal action to recover the debt. Foreclosure due to an HOA lien is more common than many homeowners realize.
3. Priority of HOA Liens Over Other Liens
One aspect of HOA liens that can surprise homeowners is how they rank in priority. In Hyattsville, MD, HOA liens can sometimes take precedence over other types of property liens, such as second mortgages.
The mortgage lender generally holds the highest priority in the event of foreclosure. Still, Maryland law allows HOAs to claim a portion of unpaid dues even ahead of a lender in certain cases.
4. How to Avoid or Resolve HOA Liens
The best way to avoid an HOA lien on your property is to stay on top of your HOA dues and assessments. However, if you find yourself falling behind on payments, it's essential to take swift action. Many HOAs are willing to work with homeowners facing financial difficulties.
Once a homeowners association lien is in place, you can still resolve the issue by paying off the overdue amount plus any fees and interest. If legal action has already started, you may need to work with an attorney to negotiate a settlement or defend against foreclosure proceedings.
In some cases, selling the property can be a viable option if you can't catch up on your payments.
Now You Can Handle HOA Lien With Ease
By knowing the inner workings of an HOA lien, you can ensure that your community runs smoother than ever.
PMI PG County is dedicated to helping HOAs succeed. You can rely on our Hyattsville team for board member resources, vendor coordination, inspections, and more.
Start elevating your MD community by scheduling a PMI consult today.
