Bankruptcy

Getting Your Home Back After an HOA or COA Foreclosure

By Amy Loftsgordon, Attorney
If you lose your home to an HOA or COA foreclosure, you might be able to get it back by “redeeming” the property.

If you fail to pay your homeowners’ association (HOA) or condominium owners’ association (COA) assessments, the association might sell your home at a foreclosure sale and use the proceeds to repay the amount you owe. But there’s a chance you could get your home back after the sale. Some states have a law that allows foreclosed homeowners to repurchase or “redeem” their home following an HOA or COA foreclosure.

Right to Redeem After an HOA or COA Foreclosure

Homeowners in a few states get the right to buy back (redeem) their property after an HOA or COA foreclosure during what’s called a “redemption period.” The amount of time a foreclosed homeowner gets to redeem the home, if state law provides a redemption period, varies from state to state.

Factors affecting the amount of time to redeem.State law sometimes sets out different redemption periods based on the circumstances. A few factors that might affect the length of the redemption are:

Cost to redeem.Typically, in order to redeem the property, a foreclosed homeowner has to pay:

  • the overdue assessments or the price the buyer at the foreclosure sale paid
  • interest, and
  • attorneys’ fees and costs.

Right to Redeem After Foreclosure in General

Even if state law doesn’t provide a specific right to redeem after an HOA or COA foreclosure, many states have a law that allows homeowners to redeem following a mortgage or deed of trust foreclosure. That general law might apply to HOA and COA foreclosures too.

How to Avoid Foreclosure in the First Place: A Payment Plan

If you’re behind in paying assessments to an HOA or COA and can’t afford to get caught up, you might be able to negotiate a payment plan with the association. That way, you can pay the amounts you owe in installments and avoid a foreclosure. It’s a good idea to contact your HOA or COA as soon as you fall behind in assessmentsbefore a foreclosure beginsto arrange a payment plan.

Getting Help

HOA and COA laws are different in each state. If you lost your home to a foreclosure because of unpaid association assessments, consult with an attorney in your state to find out whether state law provides a redemption period in your circumstances. If you need information about various ways to avoid a foreclosure, consider talking to a HUD-approved housing counselor.

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