Condominium and HOA (Homeowner Association) Assessment Liens are a powerful tool for condo and HOA boards to make sure dues and assessments get paid. An assessment mechanics lien encumbers the property so that the property cannot be sold, refinanced, or transferred without satisfying the lien, and this generally includes short sales.

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Further, besides encumbering the property, a condo lien or HOA lien may usually be foreclosed either judicially or through a trustee’s sale. This means the association can sell the unit or property to satisfy the debt. Obviously, this threat and right provides the property owner with a strong incentive to pay the assessment. If he does not, not only does he risks losing his property, but his overall debt could increase because most states allow the costs of collection, attorney’s fees, interest, and late charges to be added to the lien total.

Also, in some states, a condominium or HOA assessment lien may even have priority over a first mortgage.  That means that if the lien is foreclosed and the property sold — the association gets paid even before the bank that loaned the money to buy the property in the first place.  That’s good security.

So, Why File An Assessment Lien?:

IT GETS YOU PAID

According to real estate experts, “a board’s most potent weapon is a lien, filed against a delinquent property”.