Should I Pay My HOA Dues If I’ve Defaulted On My Mortgage?

This is a common predicament and question borrowers face when they own a property with a Homeowners Association and they have or will be in default on their mortgage on their property. “Should I pay my HOA dues if I have already defaulted on my mortgage?”, at the end of the day, if you can not make the payments that you are obligated to make then what are you supposed to do?; There are consequences and potential repercussions associated with those actions though. Some challenges owners face when they do not pay their HOA dues is that it will incur interest, late charges, and potential foreclosure fees, skyrocketing the balance to a point of no redemption in plain sight. When the borrower ultimately try’s to sell via a traditional or short sale, that balance will need to be paid or settled. If the train gets too far away and the HOA initiates foreclosure or places a lien on the property, it is one more thing a borrower needs to address.

Some HOA’s can be very aggressive and tough to negotiate with which is why many people are advised to make their HOA payments even when their mortgage is delinquent if they are seeking resolution with their property. A HOA who is owed money can play hardball on settling, making a sale extremely tough to complete as depending on the transactions circumstances and the numbers, getting the HOA the money they want can be difficult to accomplish.

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