Is there anyway to buy or invest in homeowners that are delinquent in HOA dues?

At some point the HOA will file foreclosure.

I was just wondering if there is any opportunity there? Any ideas?

Thank you


Not much that I see.

HOA Liens are not considered superior liens and if foreclosed on by the HOA you would take the property subject to the other liens.

Your inquiry brings up a very interesting subject. The idea of gaining lien rights on a property by investing in defaulted HOA Fees. So…is this any different than the opportunities presented in buying tax liens? I think so! And here is how I would pursue.

I think one would want to find an HOA who has already secured lien rights against a property for defaulted fees not paid. Then, make an offer to redeem the lien right including all administrative paperwork which was used to secure the lien (ie: Notice and Demand, Affidavit of Non Response, Notice of Fault, Affidavit of Non Response, Notice of Default, Notice of Administrative or Judicial Judgment, etc.), in exchange for paying the arrearage, and subject to reviewing the paperwork for its legitimacy.

It is likely, if one was versed in negotiating, to buy the lien rights at a discount. Once all of that is in place with a ‘bill of sale’ or ‘absolute assignment’ for the lien, and if it were me, I would send a Notice of Assignment/Sale and Demand for Payment, give them a deadline, the certify their Non Response and Non Performance, Notice of Fault, then Notice of Default, then file (likely in small claims court) a foreclosure on property.

There would be one of many outcomes but if you secure such an investment and make certain the lien is recorded as a commercial lien, you would have priority over any previous mortgages and likely be paid by mortgage company so they would protect their interests. Also, it is not likely that the homeowner would want to lose the house over HOA Fees and would likely pay you off once you begin a foreclosure process…many other possibilities.

Knowing how to do such a procedure correctly could yield short term profits. For most, there would be a learning curve, but once you get your process down, this could be a specialty market that requires small amounts of money to invest in comparison to real estate investing, with lots of potential profits.

Hope this helps.



The only fly in the ointment is that NO lender would make mortgages that could simply be wiped from title by the HOA lien.

As far as I know the only superior lien is taxes.

I personaly know of no way to make something else, including IRS , superior.

Even if you bid as a Guaranteed Bidder the IRS will tell you their position and what is superior to their lien.

I’m not sure where Bill H got the idea that I was professing to wipe out a mortgage company on title…although I make at least one mistake each day so that folks know I’m not perfect, I read my posting again and do not see where I said I could wipe out a mortgage from the title.

What I said is that one could contract to secure a commercial lien against the property during the acquisition of delinquent HOA Fees, if you know and understand how to contract using administrative procedures…I know how to do this and in securing a tacit agreement through acquiescence, one could secure the rights to these delinquent HOA Fees as a commercial lien against the property.

This would give the lien claimant priority over any pre-existing recorded mortgages on same property, which, with that priority interest, would assure a good return on your investment.

It would be likely that the mortgage holder would pay off your lien, especially in the event the holder foreclosed as the mortgage holder would not want to jeopardize their investment in that mortgage…personally, if I held a first mortgage for $100k and a commercial lien on same property was called and/or foreclosed upon, I, as the first lien holder would cure the mortgage by satisfying the lienholder of some smaller amount for HOA Delinquent Fees of (say) $10k including administration fees, to secure my position.

In fact, as I’m writing this, I see yet another opportunity in ‘options’ on delinquent HOA Fees, and with the promise of foreclosure against the property for these delinquent HOA Fees, I might sell the mortgage company on purchasing my option to keep their exposure down; thus making a quick ‘flip’ on the option.

So…there is no fly in my ointment and thank you for being a muse to create a whole new market of ‘Options on Delinquent HOA Fees’ and I will make an announcement of when my next best selling book and consulting course will be published on the topic.

Hope this helps.


Your inquiry brings up a very interesting subject. The idea of gaining lien rights on a property by investing in defaulted HOA Fees. So…is this any different than the opportunities presented in buying tax liens? I think so! And here is how I would pursue.

Rob, did not say you were trying ti wipe mortgages from title.

Merely stating the fact that a HOA lien is and will remain a HOA lien. It will not give you any rights of ownership.

And: as I said if foreclose upon will take title subject to all other liens and encumberances.

Whereas you said it was no different from buying tax liens.

That is a mistake.

Tax liens if they mature to yu will give you the property with all other liens, except IRS and in some staes certain mechanics or warehouseman liens ,wiped from title.

Quiet title in court will clear the title for you.

HOA liens wll not.

Keep at it, I reall enjoy your posts. Some of the most informative on this forum.

Good Luck.

Thank you Bill H for your encouraging words. Perhaps I can give one more perspective on this topic. If one buys an HOA delinquent account as an investment, where the HOA has not already filed a lien on property, this would be the procedure one could take to gain a remedy of getting paid or getting title:

  1. Send notice and demand (contract offer) for payment in full with time limit. I typically give 10 days but one could justify using 3 days (pursuant truth in lending practice). In the notice, include consequences of non payment as part of contract offer.

  2. Certify their non response and/or non performance with an affidavit or if using a third party witness, a certificate of non response and/or non performance.

3 Send a Notice of Fault (Opportunity to Cure) for their dishonor of not paying and include default provisions such as your non response or non payment within 10 days of receipt, proof of delivery via, constitutes agreement to granting specific power of attorney, lien rights, added fee schedule (and any provision you demand).

4 Certify non response etc per #2 above.

5 Send Notice of Default and Administrative Judgment.

6 Now, with agreement of the parties, file commercial lien process in public record against property.

7 Foreclose on lien in small claims court.

If you buy where HOA already has lien, one still might consider process as stated except #6 would not be needed if the lien was assigned from HOA to buyer/investor.

Hope this helps.


Rob, I guess you could do all that you say. However I do not think that you would get title in small claims court.

And, unless the HOA liens is for a huge amount, seems to me to be a waste of time and effort.

Buy the tax lien, let it mature, do quiet title and get the property.

Bill H

Well now a days investing in properties is a good idea whether its a home or commercial property. So INVESTING IN HOA DELIQUENT HOMEOWNERS can be a good idea but i think first you should talk with real estate professional then go ahead.