Several Arizona property owners are amazed to discovery that Arizona regulation does allow a homeowners’ affiliation to foreclose on a lien versus a homeowner in certain cases. This is not true in every single point out and was not the scenario in Arizona until eventually rather current amendments to the Arizona Revised Statutes. In order to steer clear of dropping your household to your homeowners’ affiliation, you must fully grasp what legal rights and obligations you have.
Fortunately, Arizona regulation does not allow a homeowners’ affiliation to foreclose versus a homeowner for unpaid fines. Instead, the regulation distinguishes amongst assessments and fines, allowing for for foreclosure actions centered on liens for unpaid assessments, but not fines.
Assessments are outlined as the standard dues that a homeowners’ affiliation fees to preserve the local community. If a homeowner fails to pay back this kind of assessments, and if the assessments continue to be unpaid for one 12 months or the unpaid amount of money exceeds $one,two hundred, the HOA will have a lien on the household that can be foreclosed on. Underneath Arizona regulation, an HOA’s lien for unpaid assessments attaches instantly, and many property owners do not understand until eventually its also late just how substantially problems can outcome from their failure to pay back.
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 documents. Popular fines stem from a failure to preserve landscaping, leaving trash cans outside, and parking in prohibited places. Unpaid fines do not outcome in an computerized lien and call for that the HOA sue the homeowner in court docket and attain a judgment right before the lien can be recorded. Even soon after getting this kind of a judgment and recording a lien, nonetheless, the HOA can’t seek out to foreclose on the household for unpaid fines.
Notwithstanding the homeowners’ association’s appropriate to foreclose on a lien for assessments it usually won’t make perception for the HOA to progress with this kind of an action. Despite the fact that HOA liens have precedence in excess of many obligations, this kind of liens will frequently be secondary to the key mortgage loan on the household, so if there is not sufficient equity to pay back off the mortgage loan and fulfill the lien, foreclosure may well not be warranted. House owners must fully grasp, nonetheless, that failing to pay back assessments may well outcome in the reduction of their household, and that HOA’s may well pursue foreclosure even when this kind of an action is not fiscally merited.
The statutes governing the legal rights and obligations of property owners and HOA’s are complex, and property owners experiencing collection action by their HOA must contact an skilled Arizona HOA lawyer as shortly as probable. In many circumstances there are merited defenses, but they have to be innovative right before an adverse decision in rendered by a court docket.