I continue to be surprised by the general level of misunderstanding regarding the rights of HOAs and Condo Associations to foreclose under liens for delinquent assessments. HOAs and Condo Associations have the right (and many are exercising that right) to foreclose on a lien for delinquent assessments just like a mortgage lender foreclosing on a mortgage on a property. Many property owners who are unable to meet their mortgage obligations are also unable to pay their assessments. However, with their attention directed at finding a way to deal with their mortgage issues  - property owners in distress often ignore their HOA or Condo obligations and resulting liens. I received a call from a gentleman yesterday who actually lost his home to a foreclosure of his HOA lien - while he was busy negotiating a loan modification with his lender. He had just been served with a 24 hour notice from the Sheriff to vacate the property as the foreclosure under the HOA lien had been successfully completed and a third party actually bid and purchased the property subject to the mortgage. It was not easy to tell this man that he had passed the point of no return - he has really lost his home.

I don't think there is an HOA or Condo Association in South Florida that is not experiencing some owner delinquencies. Associations are starting to become more aggressive in their collection efforts; filing liens, referring the delinquencies to debt collection agencies, terminating delivery of services to delinquent homeowners and using the most powerful tool they have - actually foreclosing on their liens. Realtors, mortgage brokers and attorneys handling short sales and loan modifications need to pay attention to HOA and Condo assessment delinquencies as they work through these transactions.