“Selling to a Cash Home Buyer Before Foreclosure Hits”
In Washington State, many homeowners live in neighborhoods managed by a homeowners association (HOA). These organizations maintain community standards, manage shared spaces, and collect dues from residents. But what happens when you fall behind on those dues? Can your HOA actually foreclose on your home?
The short answer is yes—but the situation is more complex than you might think. Washington law allows HOAs to initiate foreclosure proceedings under certain conditions, even if you’re current on your mortgage. If you’re facing this kind of pressure, understanding your rights, your risks, and your options is essential.
This blog post will explain how HOA foreclosures work in Washington, when they can happen, and how to take back control—especially by selling your house to a cash home buyer before things escalate.
What Is an HOA and Why Do They Have Foreclosure Powers?
A homeowners association (HOA) is a nonprofit entity that governs a residential community, often including subdivisions, townhomes, or condominiums. These associations are established to:
- Enforce community rules (CC&Rs)
- Maintain common areas (like parks, pools, or clubhouses)
- Collect dues and assessments from homeowners
When you buy a property in an HOA-managed community, you agree to their rules and payment structure. This includes granting them the legal right to place a lien on your property if you fail to pay your dues or special assessments.
In Washington, the HOA lien can lead to foreclosure, meaning they can legally take ownership of your home—even if your mortgage is current.
How HOA Foreclosure Works in Washington State
Washington law allows HOAs to collect delinquent dues through foreclosure under the Washington Common Interest Ownership Act (RCW 64.90) or the Homeowners’ Association Act (RCW 64.38), depending on when your HOA was formed.
Here’s how the process typically unfolds:
- You fall behind on payments.
HOAs in Washington usually begin issuing late notices after 30–60 days of nonpayment. Late fees and interest start accruing. - A lien is filed.
After a certain period (typically 90+ days), the HOA records a lien with the county. This legally attaches your debt to the property. - Foreclosure process begins.
If the debt remains unpaid, the HOA can pursue a judicial or non-judicial foreclosure, depending on the governing documents. - Public auction is scheduled.
The home may be auctioned off at a trustee sale, potentially for much less than market value. - You lose the home.
If the foreclosure goes through, ownership is transferred—even if you still owe money on the mortgage.
This process can move quickly and doesn’t require the same lengthy legal proceedings as mortgage foreclosures. Some Washington homeowners are shocked to learn they’ve lost their house over a few thousand dollars in HOA debt.
How Much Does It Take for an HOA to Foreclose?
You might think you need to owe a lot for an HOA to foreclose, but that’s not always the case. In Washington:
- Some HOAs will begin foreclosure proceedings for as little as $2,000–$5,000 in unpaid dues.
- Late fees, legal costs, and interest can significantly increase your balance.
- The longer you wait, the faster those small debts become a serious risk to your home.
In some cases, homeowners in Spokane and other cities across Washington have lost their homes for HOA debts totaling less than $10,000.
What Happens If the HOA Forecloses Before the Mortgage Company?
HOA liens are usually subordinate to your mortgage, meaning the mortgage lender still has a legal right to be paid. However, that doesn’t stop the HOA from initiating a foreclosure and forcing the home to auction.
If the HOA sells your house at auction:
- The buyer may take title subject to your mortgage.
- The mortgage company may then foreclose as well, starting a second round of legal issues.
- You could lose the home and still owe money on the unpaid mortgage.
- Your credit will suffer, and you may struggle to qualify for future loans or rentals.
Warning Signs You May Be at Risk
Many homeowners don’t realize how quickly an HOA debt can spiral. Here are common red flags:
- You’ve received multiple letters from the HOA about missed payments.
- A lien notice was sent to your home or recorded with the county.
- A law firm or collection agency has begun contacting you.
- You’ve received a notice of trustee sale or pending legal action.
If you’re seeing these signs, now is the time to act.
Options to Avoid HOA Foreclosure in Washington
If you’re behind on HOA dues in Washington, you have a few possible options:
1. Catch Up On Payments
If you have the funds, reach out to the HOA and try to negotiate a repayment plan. Many associations would rather settle the debt than go through a foreclosure process.
2. Seek Legal Advice
A real estate attorney can review your HOA’s bylaws and Washington statutes to see if the foreclosure is lawful, and may help delay or stop the process.
3. Sell the Property
If you can’t catch up on the debt, selling your home before the HOA forecloses is the best way to protect your equity and avoid damage to your credit.
Working with a cash home buyer can speed this process up dramatically, especially if you’re under a tight timeline.
Selling to a Cash Home Buyer Before Foreclosure Hits
Time is critical when facing HOA foreclosure in Washington. Traditional home sales can take 30–90 days, not including prep work, agent contracts, inspections, and closing delays. But if you’re already behind and a lien has been recorded, you may not have that kind of time.
At REI Branded Home Buyer, we specialize in working with homeowners who are dealing with urgent financial issues—including those at risk of HOA foreclosure.
Here’s how we help:
- No need to clean or repair the home
- No realtor fees or commissions
- We handle liens and paperwork with your HOA
- Cash offers made in 24 hours
- Close in as little as 7 days
We provide easy home buyer solutions to homeowners in Spokane, Tri-Cities, Yakima, Tacoma, and other areas across Washington State.
Real Estate and HOA Trends in Washington
With inflation, rising maintenance costs, and homeowner turnover, more HOAs across Washington have begun strictly enforcing collection policies. Some communities are even hiring outside firms to track delinquencies and move quickly toward foreclosure.
If you’re experiencing financial hardship, dealing with unexpected medical bills, divorce, job loss, or other life challenges, you’re not alone—and you don’t have to lose your home to an HOA lien. You do have options.
Final Thoughts: Take Action Before It’s Too Late
HOA foreclosure in Washington is a very real—and very serious—risk for homeowners who fall behind on dues. And unlike a mortgage lender, HOAs don’t need to wait long or offer many protections before starting the process.
If you’re behind on payments and worried about losing your home:
✅ Take action early
✅ Know your rights under Washington law
✅ Explore all your options—especially selling before foreclosure starts
At REI Branded Home Buyer, we’ve helped many homeowners across Washington get out from under mounting debt and start fresh. If you’re worried about an HOA taking your house, we’re ready to offer a fast, fair cash offer that works on your timeline.
📞 Call 509-769-3439
📧 Email info@reibrandedhomebuyer.com
🌐 Visit reibrandedhomebuyer.com
Don’t let an HOA foreclosure catch you off guard. Let us help you take control and move forward on your terms.
Sell Your Washington House Fast Today
About REI Branded Home Buyer
Real People. Real Stories. Real Solutions. We’re George and TJ — two regular guys who teamed up to create REI Branded Home Buyer, a local company with one simple mission: to help people sell their homes without stress, games, or pressure. We actually met at a local real estate meetup. A mutual friend randomly shouted, “Hey George, do you want to be this guy’s mentor?” George laughed and said, “Just give him my cell!” A coffee meeting later, and the rest is history. We've been working together ever since. Our passion for helping homeowners comes from personal experience. George was once homeless, so he deeply understands what it’s like to face housing uncertainty. TJ’s family went through a crisis and had to sell their home fast — with the help of a cash homebuyer. Those experiences shaped who we are and inspired us to create a company that treats people the way we wish we’d been treated. Let’s be real: the real estate world is full of shady companies, pushy salespeople, and sleazy homebuyers who care more about profit than people. We started REI Branded Home Buyer because we believe it should be the other way around — people first, profit second. We’re proud to call Spokane home. Our wives, Jenny and Michelle, love the slower pace of life here and all the outdoor beauty Washington has to offer. George and Jenny have two amazing daughters and two dogs — they love to travel and recently visited Japan to see their daughter abroad. TJ and Michelle are outdoor lovers through and through — backpacking, hiking, hunting, fishing, even rock climbing. Michelle’s become quite the mountaineer! If you’re thinking about selling a house — no matter the reason — we’d love to hear your story and see how we can help.