HOA lien procedure
The following is a list of the steps our office does when assisting homeowner's associations in collecting on past due assessments. Usually, the matter is resolved after the lien is placed and seldom do we have to resort to a sale of the delinquent owner's property.
Our office obtains a list of delinquent payers from the Homeowners/Property owners Associations. This list includes the name, property address, last known mailing address for each property owner, and amount owed to the HOA/POA. Attorney confirms that Declarations provide for assessments.
The delinquent payer list is checked against the county’s Tax Administration website to confirm that the property has not been transferred to a new property owner.
Notification letters are written and mailed to each delinquent payer specifying the amount owed, that the delinquent payer will owe attorney’s fees and costs if assessments are not paid and, have thirty (30) days from the date of the letter to come current with the HOA/POA or a lien will be placed on the subject property. Notification letters are mailed United States Postal Service via certified mail and regular mail to the property address and last known mailing address of the property owner if not the same.
Once thirty (30) days have elapsed and payment has not been received by the HOA/POA or by Hodges & Coxe, P.C. on behalf of the HOA/POA, a claim of lien is drafted for each property. Deeds for each subject property are reviewed to confirm legal descriptions for the properties.
Claims of Lien are reviewed and filed with the clerk of court. Claims of Lien are mailed United States Postal Service via certified mail and regular mail to the property address and last known mailing address of the property owner if not the same.
Attorney and paralegal time is reviewed; legal fees are calculated and divided among all the delinquent payers and is included in their total fees to eradicate the lien.
Within three (3) years from the date of the lien, after consultation with the HOA/POA, a suit is filed to enforce the lien.
After judgment, a judicial sale of the property is conducted to satisfy the lien, fees, costs and interest.
–Bradley A. Coxe is a practicing attorney in Wilmington, NC with Hodges & Coxe PC who specializes in Personal Injury, Medical Malpractice, Homeowner's Associations, Contract and Real Estate disputes and all forms of Civil Litigation. Please contact him at (910) 772-1678.