“What Happens If an HOA Forecloses?”
For many Washington homeowners, living in a community with a homeowners association (HOA) offers benefits like shared amenities, neighborhood upkeep, and strong community standards. But with those benefits come rules—and if you fall behind on HOA dues, the consequences can be severe.
One of the most alarming questions homeowners ask is: Can an HOA actually foreclose on my home in Washington? The answer is yes, under specific circumstances. And if you’re not proactive, it could happen faster than you think.
In this post, we’ll break down Washington’s laws around HOA foreclosures, explain your rights as a homeowner, and offer solutions if you’re behind on dues and at risk of losing your home.
What Is an HOA Foreclosure?
An HOA foreclosure is a legal process in which a homeowners association takes action to recover unpaid assessments or fees by placing a lien on a home and eventually selling it—similar to how a lender might foreclose for unpaid mortgage payments.
HOAs in Washington have legal authority under state law and community covenants to enforce payments, impose fines, and even foreclose on properties in certain cases.
When Can an HOA Foreclose in Washington?
In Washington State, HOA powers are governed by the Washington Uniform Common Interest Ownership Act (WUCIOA) and RCW 64.38 (for older associations). Here’s what you need to know:
🔒 1. The HOA Can Record a Lien
If a homeowner doesn’t pay assessments (monthly dues, special assessments, etc.), the HOA can record a lien against the property. This lien becomes a legal claim against your home.
⏱️ 2. Foreclosure Can Begin After 3 Months of Nonpayment
Once the lien is in place, Washington law allows HOAs to initiate foreclosure proceedings if the debt remains unpaid for at least 3 months. Some associations may wait longer, but they are not required to.
💰 3. The Amount Owed Must Be $2,000 or More
HOAs typically cannot pursue foreclosure for small amounts. The delinquency usually must exceed $2,000, including late fees, interest, legal costs, and assessments.
Types of HOA Foreclosures
There are two main types of foreclosure that HOAs can pursue in Washington:
1. Judicial Foreclosure
This process requires the HOA to file a lawsuit in court. It’s more formal and provides more protections for the homeowner, such as the opportunity to respond or cure the default.
2. Non-Judicial Foreclosure
Some HOAs in Washington have the authority to foreclose without court involvement, as long as the community bylaws allow it and proper notices are issued. This is faster and more dangerous for homeowners.
What Happens If an HOA Forecloses?
If the HOA completes the foreclosure process:
- The home may be sold at public auction
- The HOA is paid from the sale proceeds
- The original homeowner loses ownership rights
- The mortgage lender is still owed, and can initiate their own foreclosure to protect their interest
It’s important to note: HOA foreclosure does not remove your mortgage. It simply transfers title to the buyer, who will still need to deal with the lender or face their own foreclosure action.
Can You Stop an HOA Foreclosure?
Yes—but you must act quickly. Here are your options:
✅ 1. Pay the Delinquent Amount
The most direct way to stop the process is to pay the amount owed in full, including:
- Past-due assessments
- Late fees
- Legal costs
- Interest
Once paid, the HOA must release the lien.
✅ 2. Negotiate a Payment Plan
Many Washington HOAs are willing to work with homeowners to avoid foreclosure. Ask if they offer hardship payment plans or installment options.
✅ 3. File a Legal Challenge
If the HOA didn’t follow proper procedures, didn’t notify you, or violated their bylaws, you may have grounds to contest the foreclosure in court.
✅ 4. File Bankruptcy (Last Resort)
In some cases, filing bankruptcy may delay or stop the foreclosure process. However, this is a complex legal decision and should only be considered with guidance from a bankruptcy attorney.
What If You Can’t Afford to Catch Up?
If you’re dealing with long-term financial hardship or other issues—like job loss, divorce, medical bills, or inherited property—you may not be able to afford to pay the HOA dues in time to stop the foreclosure. In that case, it may be time to consider selling your home.
Selling a Home With HOA Problems
Trying to sell a home while facing HOA foreclosure can be difficult, especially if:
- There’s a recorded lien
- You’re behind on mortgage payments
- The property is in poor condition
- You need to close fast to avoid losing everything
Most realtors will hesitate to take on a listing with unresolved legal or title issues. Traditional buyers might be turned off by the debt or time constraints.
But there’s good news: you still have options.
How a Cash Home Buyer Can Help
At REI Branded Home Buyer, we help Washington homeowners facing HOA foreclosure sell quickly, avoid legal problems, and walk away with peace of mind. Here’s how we can help:
- We buy houses with liens — including HOA, tax, and medical liens
- We close fast — in as little as 7–10 days
- We buy homes in any condition — no need to clean, repair, or stage
- We handle all the paperwork — including lien resolution
- We offer a fair, no-obligation cash offer
We provide easy home buying solutions for Washington sellers who need to act fast and want to avoid foreclosure.
Cities We Serve in Washington
We work across the entire state, including:
- Spokane
- Kennewick, Pasco, and Richland (Tri-Cities)
- Yakima
- Walla Walla
- Pullman
- Colville
- And many surrounding areas
Wherever you’re located in Washington, we’re ready to help.
What Happens If You Ignore HOA Foreclosure Notices?
If you fail to respond or act on an HOA’s foreclosure notices, the consequences can be serious:
- You could lose your home at auction
- The foreclosure will damage your credit
- You may still owe remaining mortgage debt
- You could face legal fees and judgments
It’s always better to communicate early and explore your options—before the process gets too far.
Final Thoughts: Take Action Before It’s Too Late
HOAs in Washington have the legal power to foreclose on homes with unpaid dues. But foreclosure is not inevitable. Whether you negotiate a solution, pay off the debt, or choose to sell, you have the power to avoid losing your home.
At REI Branded Home Buyer, we help homeowners across Washington make informed, fast decisions when facing HOA problems and foreclosure threats. If you’re behind on dues and unsure what to do next, let’s talk.
📞 Call 509-769-3439
📧 Email info@reibrandedhomebuyer.com
🌐 Visit reibrandedhomebuyer.com
We’ll review your situation, explain your options, and make a fair cash offer—no pressure, no obligation. Let’s find the right solution before it’s too late.
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.