HOA Super-Priority Liens: A State-by-State Breakdown

Many homeowners are shocked to learn that their homeowners association can foreclose on their home for unpaid HOA dues — sometimes as little as a few thousand dollars. And in states with super-priority lien laws, the HOA's lien can actually jump ahead of the first mortgage, taking priority over the bank. This is one of the most dangerous and underappreciated foreclosure threats facing homeowners in HOA-governed communities.

A super-priority HOA lien is a portion of the HOA's assessment lien that is given priority over the first mortgage, regardless of when the mortgage was recorded. In these states — including Nevada, Colorado, Washington, Oregon, Connecticut, and Vermont — HOA foreclosures can wipe out the first mortgage entirely. The bank may have no choice but to pay off the HOA to protect its own interest. This creates perverse incentives: the HOA can foreclose for a few thousand dollars in unpaid dues, and the bank stands to lose its entire mortgage.

The list of super-priority states: Nevada (the most aggressive — HOA super-priority foreclosures have been upheld by the Nevada Supreme Court), Colorado (up to 6 months of regular assessments), Washington (up to 6 months of delinquent assessments), Oregon (limited super-priority), Connecticut (9 months of common charges), Vermont (limited), and several others with varying limitations. Each state has different caps on how much of the lien qualifies for super-priority status.

The Uniform Common Interest Ownership Act (UCIOA), adopted in several states, provides a model for balancing HOA and lender rights. Under UCIOA, the HOA has a super-priority lien for up to 6 months of common expense assessments. This protects the HOA's ability to collect while limiting the damage to first mortgage holders. But even 6 months of assessments plus late fees and legal costs can add up to thousands of dollars — enough for a foreclosure filing.

Defending against HOA foreclosure: first, never ignore HOA delinquency notices — they move to foreclosure faster than mortgage lenders. Second, know your HOA's governing documents and state law: the super-priority amount is usually capped by statute, and the HOA must follow strict notice and procedural requirements. Third, communicate with the HOA: many boards will work out payment plans rather than foreclose. Fourth, check whether your mortgage lender will advance HOA dues to protect its lien position — many lenders will pay the HOA and add it to your loan balance.

If an HOA foreclosure has already been filed, you have defenses: the HOA may have failed to follow required procedures, the super-priority amount may be incorrect, or the HOA may have violated the Fair Debt Collection Practices Act in its collection efforts. Our team can review your HOA's governing documents, state law, and the foreclosure filing to identify defenses and negotiate a resolution.