Avoiding HOA Foreclosure In Texas: What Homeowners Need To Know

Did you know you can have your house Foreclosed on by your HOA in Texas? Yes, it can happen. Trish McQuiston from Tomball is in the legal process of fighting her eviction from the home she has owned for 15 years.

A property owners' association may place an assessment lien on the property as a last resort. A lien secures the payment of debt when a property gets sold. The association can then force the sale of the property and collect the money owed by the homeowner.

The surprising part is that she owed the HOA only $1,800.00. She told ABC 13 in Houston that a Reality Investment Company served her eviction papers after they bought her home at auction.

The HOA's attorney said at least 12 notices were sent to the owner, including a FedEx delivery and a certified notice from Harris County's district clerk. McQuiston has now hired an attorney to fight the eviction.

It can happen if you don't resolve the matter with the HOA. According to Texas.gov, your HOA can take two legal actions: Judicial and Non-judicial. Both will result in you losing your home to Foreclosure. Before they take the property, they can report derogatory information to credit reporting agencies affecting your credit.

The lesson here is that if you owe dues, fines, or any dollars to an HOA in Texas, you must pay it. Experts highly recommend you review all HOA documents before buying the home. Be sure you can afford the annual dues before you buy, and be prepared to pay any fines or dues when they are due.