WHAT IS A HOMEOWNER'S ASSOCIATION (HOA) ASSESSMENT LIEN?

Once a homeowner becomes delinquent on their monthly fees (assessments), the HOA attaches an assessment lien to the homeowner's property for the benefit of the HOA.  This assessment lien allows the HOA to sell the homeowner's property to repay delinquent fees owed to the HOA.  Arizona law defines that an HOA assessment lien may only be imposed for past due assessments, late fees, collection fees and attorney's fees relating to the past due HOA assessments. An assessment lien foreclosure lawsuit can only be filed if the homeowner is delinquent by at least $1,200 in overdue assessments or it is a least one year past due.   If the HOA begins its foreclosure lawsuit too soon, the lawsuit can be dismissed.

An HOA assessment lien also operates as a cloud on the title which prohibits the seller from selling or refinancing the property until the HOA assessment lien is paid off.    Most assessment liens are automatically extinguished if collection proceedings are not brought within 3 years.  Furthermore, once a property is foreclosed upon, the HOA assessment is extinguished and the HOA essentially loses whatever monies they are owed.