HOA Foreclosure

An HOA foreclosure is a legal action initiated by a homeowners association (HOA) against a property owner who has failed to pay required dues, assessments, or fines. In Texas, HOAs in planned communities have a statutory lien right for unpaid assessments under Chapter 202 of the Texas Property Code, and this lien can be enforced by foreclosure if assessments remain unpaid.

Texas Context

Texas HOA foreclosures are judicial proceedings (court-ordered) unless the HOA's deed restrictions or Texas Property Code specifically authorize non-judicial foreclosure. HOA foreclosures can create complex title situations for buyers — particularly when there is also a first mortgage on the property, as the HOA lien is typically junior to the first mortgage. However, some HOA foreclosures on low-value homes (where equity exceeds the HOA claim) can produce highly profitable acquisition opportunities. Foreclosures Now tracks HOA foreclosure filings alongside mortgage foreclosures.