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Homeowners associations (HOAs) throughout the nation are reportedly taking a more durable stance on unpaid dues, pursuing foreclosures towards extra householders as communities grapple with mounting financial pressures.
Real property consultants say the aggressive assortment efforts are being pushed by rising working prices, shrinking reserve funds and issues that unpaid assessments might depart associations unable to cowl important bills.
According to actual property analytics agency ATTOM, HOA-related foreclosures jumped almost 40% in contrast with two years earlier, The Wall Street Journal reported. The report additionally discovered HOA foreclosures are rising quicker than general mortgage foreclosures charges.
“HOAs are being forced into more aggressive collections to avoid their own financial collapse,” Brian Fox, co-founder of actual property expertise agency Benutech, which tracks HOA delinquency developments and foreclosures, instructed WSJ.
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An aerial view of enormous Victorian homes in Friendship, a neighborhood in the East End of Pittsburgh, Pennsylvania, on a sunny morning in the autumn. (Getty Images / Getty Images)
HOAs usually depend on month-to-month or annual dues from residents to fund upkeep, repairs, insurance coverage, landscaping and different group companies. But as some householders wrestle with increased residing prices and mounting bills, extra associations are dealing with an increase in delinquent accounts.
Rather than providing prolonged grace intervals, some associations are shifting delinquent accounts to attorneys extra shortly or submitting liens towards householders who fall behind on assessments.
The crackdown is affecting communities starting from suburban condominium complexes to luxurious neighborhoods, in accordance with the report.
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Some Georgia residents are talking out after dealing with the wrath of their native homeowner associations (HOA), with some folks having their properties foreclosed on them. (Getty Images / Getty Images)
Benutech Data Insights found that homeowner associations have filed a pointy increase in liens, that are authorized claims positioned on a property when a homeowner falls behind on assessments, charges or fines. In many states, unpaid liens can finally result in foreclosures.
In 2025, HOAs reportedly filed 284,933 liens towards householders, roughly one each 90 seconds. That determine represents an 8.6% increase from 2024, in accordance with property information compiled by Benutech Data Insights.
Financial strain has additionally intensified inside homeowner associations themselves.
A late-2025 report by Reserve Study discovered that almost three-quarters of association-governed communities are underfunded. Specifically, 74% of associations had been lower than 70% funded, which means they might not have ample reserve financial savings to pay for anticipated repairs and capital tasks.
At the identical time, HOAs have been hit with rising prices for staffing, landscaping, upkeep and constructing supplies.
Residential properties in suburban sprawl improvement in North Port, Florida. Low-density personal homes in rural suburbs. Housing market in the USA. (Bilanol / Getty Images)
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Insurance has turn out to be one of many largest price drivers.
According to the Foundation for Community Association Research, 93% of surveyed associations reported will increase in property and casualty insurance coverage premiums.
More than half these premiums rose between 11% and 25%, whereas about 10% reported will increase exceeding 100%, including additional strain on HOA budgets and rising the necessity to accumulate assessments from householders on time.
