To foreclose means to start the legal process by which the property can be sold to settle the debt or other obligation. The property is sold to the highest bidder. At the auction the association will open the bidding and by default they win the auction if no other bidders step forward. Depending on the priority of the lien other debts, obligations or priorities might continue to exist after the foreclosure. The association amy own the property but will still need to address the other liens. The same applies to the other possible bidders. Foreclosure action is serious and a property owner should definitely respond immediately to find a solution. Waiting too long will limit one's possible solutions. In many foreclosures the owner waits until it is too late as they are in denial about the true risks.
An assessment lien is a legal claim on an owners property for collateral against delinquent assessments for a homeowners' association. They are provided for in the governing documents of an association.
Property Owners' Association (similar to Homeowners' Association)
A homeowners association cannot be a mandatory association without the consent of 100% of the property owners in the development attempting to establish an association. In addition to the consent of the property owners, the association must follow certain procedures and file the proper documents in order to subject the property to the association's rule.
Of course--if the association likes to pay attorney fees and court costs to the property owners whose land title was slandered by the lien. If the association is not in the deed of the property, then the association has no authority to compel payment of dues. For the same reason, those property owners have no authority to enjoy property and facilities owned by the association. Check with a title company to see if the association is in the deed of the delinquent properties.Another PerspectiveSometimes early property owners adjacent to lake communities will voluntarily join the association and thereby make the facilities appurtenant to their own lots and make their property subject to its rules and regulations. Also, adjacent tract owners may voluntarily make their lots subject to the rules and regulations in order to maintain the community at a high standard and attract buyers. You need to consult with the attorney who represented you when you purchased the property to determine if your property was ever made subject to the rules and regulations of the leisure community. That information would be disclosed by a comprehensive title examination.
This act is apparently the Georgia state 'association' act, enacted in 1994, to address the issues involved in association forms of real property ownership. It is Article 6 of the Property Act, Title 44.
If you purchased your property subject to the by-laws and rules & regulations of a Homeowner's Association you cannot remove your property from the association. All the other owners have the right to expect that each owner must follow the rules and pay their share in the assessments and maintenance fees. Removing your property from the association would mean that you could not share in any of the benefits of the association, including amenities, roadways, common area parking, trash removal, sewer service, master insurance coverage and so forth. There would be no way to accommodate your property separately from the common elements owned by all owners. As an alternative, you can remove yourself from the association by selling your property to a new owner.
PROPERTY OWNERS ASSOCIATION is usually the governing body in any housing development. It charges property owners for the maintenance on your property as well as common property shared by all, pools - picnic area's - playgrounds, etc.
Read your governing documents to determine the steps the board takes in order to recover the debt from an owner who does not pay association assessments. Your association attorney can best advise you.
You don't describe how your 'association is delinquent', so it's difficult to answer your question precisely. However, if the board is in violation of the governing documents, non-board member owners must gather to remedy the situation, potentially by electing a new board. The 'new' board needs the advice of counsel to determine how to recover from the actions or inactions of the delinquent association. Once a remedy is in place, selling your unit should be easier, since the issues have been identified and the new board is working toward a resolution. If there is no action on the part of owners to rectify association delinquencies, then selling your unit must include disclosing the issues to any potential buyer.
As most home owners associations are written into the deed as a convanant there is no way out but to sell the property.
"PROPERTY OWNERS ASSOCIATION" would apply if what you are buying is land, but you did not specify.
The association wants to do more than report owners delinquent. The association wants to collect the debt. Check your governing documents to discover whether or not your assessments are automatically liens against the units. If so, then the association's attorney can file a formal lien. The board may also have additional recourse to collect unpaid assessments, including perhaps selling the unit in order to satisfy the debt. One way is to report the delinquent unit owners to a collections company, though these companies usually charge outrageous fees. I suggest the association retain a real estate attorney and file liens against the delinquent units. These liens may be foreclosed if not paid, which will be an incentive for the delinquent unit owners to pay up. Don't try to file liens without an attorney--if done incorrectly, thousands of dollars in attorney fees will likely be spent. The liens will then show up on the delinquent owners' credit reports. In most states, it is not legal to publish a debtor's name, but you may be able to publish the unit number in your financial reports and board meeting minutes. Once a lien is filed, it becomes public record and can appear on an owner's credit report.