HOA Foreclosures Exist–Here’s What You Should Know

HOA Foreclosures Exist–Here’s What You Should Know

If you are a homeowner in South Carolina, your property may be governed by a homeowner’s association (HOA). As a member of an HOA, you are likely subject to monthly or yearly assessments to the association. If you find yourself in a sticky financial situation, paying your HOA dues may be low on your list of priorities. It’s critical to make these payments, however, as failure to do so can actually put your homeownership in jeopardy.

The Power of the South Carolina HOA

A homeowner’s association is a nonprofit organization which collects monthly or yearly dues—otherwise known as assessments—for the upkeep of the neighborhood or subdivision. Don’t be fooled into thinking that your HOA is just a neighborhood group that keeps the pool cleaned and the lawn mowed, however; in South Carolina, homeowner’s associations have a great deal of power. The authority of your HOA is laid out in governing documents called bylaws, and the rules put in place for homeowners are established in the HOA’s covenants, conditions and restrictions (CC&Rs).

When it comes to homeowner’s associations, there’s one important fact to take away from this article: unless your HOA’s assessments are specified as optional, they absolutely must be paid. The repercussions for nonpayment can be much more severe than a stern letter from the association or nasty stares from the HOA’s board members.

HOA Liens

In South Carolina, homeowner’s associations can place a lien on your property if you have not paid your association dues or fail to pay any fines levied against you for nonconformity with the HOA’s CC&Rs. If you don’t pay off the lien, then you won’t be able to sell your home in the future, or will have to satisfy the lien from the proceeds of your home sale.

HOA Foreclosures

The most significant power that your HOA has is one that is not common knowledge to homeowners—in South Carolina, your homeowner’s association can actually initiate an action for foreclosure of your home for nonpayment of your HOA assessments or unpaid fines. Put another way, your homeowner’s association has the power to take your home away from you if you do not pay your assessments or fines.

To make matters worse, an HOA foreclosure does not eliminate your mortgage obligation; rather, your lender will expect you to make your regular monthly mortgage payment for a home that you don’t own anymore. Failure to make your mortgage payments can lead to another foreclosure action by your lender.

While HOA foreclosures seem like an anomaly, these actions do occur, and they happen more frequently than you might think. In fact, there are law firms in South Carolina whose sole business is to foreclose on homes on behalf of homeowner’s associations.

Facing Foreclosure From Your HOA? Contact Us Today

If your South Carolina property is being foreclosed upon by your homeowner’s association for delinquent assessments or fines, it’s critical to seek legal assistance as soon as possible. The Boger Law Firm is dedicated to helping those who are facing HOA foreclosures, and have fought on behalf of clients facing foreclosure for over a decade. Don’t wait until it is too late to get the help you need to save your home—to schedule an appointment to speak with a member of our legal team about your foreclosure today, fill out an online contact form or call (803) 252-2880 today.


Homeowner’s Associations and Their Powers

If you are a South Carolina homeowner, you and your home may be under the supervision of a homeowner’s association, or HOA. In such a situation, it’s critical to understand the purpose of an HOA, along with the powers that the organization can hold over homeowners and their property.

What is a Homeowner’s Association?

When you purchase a home in a planned development, the subdivision will often be controlled by a homeowner’s association, which is an organization that creates and enforces rules for the properties and property owners within the subdivision. If you purchase a property located within the control of an HOA, you will automatically become a member of the homeowner’s association upon the purchase of your home.

Homeowner’s associations usually collect fees, or “dues,” from homeowners either monthly or annually. HOA fees are often used to pay for services like pest control, maintenance and upkeep for amenities such as swimming pools and tennis courts, and landscaping for the development’s common areas. These dues are not optional, and failure to pay the dues can lead to severe penalties.

The Power of a South Carolina Homeowner’s Association

While an HOA may sound like nothing more than an organization that keeps the grass cut in a subdivision, homeowner’s associations in South Carolina actually have a great deal of power. The authority of an HOA is laid out in a set of rules called bylaws, which govern the homeowner’s association and its members. It is extremely important to obtain a copy of your association’s bylaws, as this document controls the operation of the HOA, and dictate matters such as:

  • How often the homeowner’s association holds meetings;
  • What officers of the board of directors can and cannot do; and
  • How members can vote for new board members.

The power of an HOA does not stop at collecting dues from homeowners—if the association has implemented Covenants, Conditions and Restrictions (CC&Rs), the association is also able to control what you can and cannot do with your property. CC&Rs can control aspects of your home such as:

  • What color you may paint your home;
  • What fence you can put up around your home;
  • How many pets you are allowed to have in the property, along with what breeds;
  • How many cars are allowed to park in front of your home; and
  • What buildings you may build on your property.

Failure to abide by the rules of the homeowner’s association can lead to costly consequences such as fines or an inability to use amenities such as the association’s pool. In some cases, an HOA may even place a lien on your property, which can impact your ability to sell the property at a later date.

Facing Pushback from an HOA? We Can Help

If you are experiencing issues with a homeowner’s association in South Carolina, the real estate attorneys at the Boger Law Firm are dedicated to making sure that you aren’t taken advantage of by your HOA. To schedule a consultation to speak with a member of our legal team, fill out an online contact form or call (803) 252-2880 today.