“What Happens After an HOA Foreclosure in Washington?”
If you live in a neighborhood governed by a Homeowners Association (HOA), you’re probably familiar with the monthly dues, community rules, and maintenance standards that come with it. But what many Washington homeowners don’t realize is that falling behind on those HOA dues can have serious—and even devastating—consequences.
In fact, under Washington State law, HOAs have the power to foreclose on your home if dues remain unpaid long enough.
If you’re behind on HOA fees and feeling the pressure, you’re not alone—and you do have options. At REI Branded Home Buyer, we help homeowners across Spokane and beyond avoid foreclosure, including those facing action from their HOA. In this guide, we’ll break down exactly how HOA foreclosure works, what your rights are, and how you can still sell your home before losing it.
What Is an HOA Foreclosure?
In Washington State, an HOA (or a condo association) can initiate a nonjudicial foreclosure if a homeowner fails to pay required assessments like monthly dues, special assessments, or fees for rule violations.
This means they don’t even need to take you to court first—they can sell your home at auction to collect what they’re owed, even if your mortgage is current.
It’s a harsh reality, and it happens more often than people realize.
How Can an HOA Foreclose in Washington?
Here’s a step-by-step overview of how an HOA foreclosure typically unfolds:
1. Missed Payments
You fall behind on your HOA dues or special assessments. Associations often begin collection actions after 60–90 days of delinquency.
2. Late Fees & Legal Costs
The HOA may tack on late fees, interest, and legal costs, rapidly increasing the total you owe.
3. Lien Is Filed
The HOA records a lien against your property in the county records. This is the first legal step to foreclosure.
4. Notice of Foreclosure Sale
If the lien remains unpaid, the HOA can move to sell the property. They will send a notice and publish it publicly—usually through a trustee—giving you time to resolve the debt or sell.
5. Foreclosure Auction
The home is sold at auction to satisfy the debt. In some cases, the HOA itself may purchase the home and then resell it later.
Washington Laws Governing HOA Foreclosure
Under RCW 64.34 and RCW 64.38, Washington law gives HOAs and condo associations the authority to file liens and foreclose under specific conditions:
- The total delinquency must exceed three months of assessments or $2,000, whichever is less.
- The association must provide notice of intent to foreclose at least 90 days before the sale.
- The foreclosure is nonjudicial, meaning the court is not involved unless you contest it.
It’s important to note: Your lender doesn’t have to be involved for an HOA to proceed. Even if you’re current on your mortgage, the HOA can legally foreclose, wiping out your equity and leaving you in serious financial distress.
The Real Risk of Losing Your Home Over HOA Fees
Homeowners often underestimate how quickly a small debt can spiral into foreclosure. A few missed payments can turn into thousands once fees, penalties, and legal costs are added.
Consider this real-world scenario:
- You miss 3 months of $300 HOA dues = $900
- $75 monthly late fees over 3 months = $225
- Attorney fees and legal costs = $2,000+
- Total due = Over $3,000, triggering eligibility for foreclosure
Once that threshold is reached, the HOA can proceed with a lien and foreclosure sale, sometimes giving you only weeks to act.
What Happens After an HOA Foreclosure in Washington?
Once the property is sold at auction:
- You lose the home and any equity you had in it.
- You may still owe your mortgage—the HOA sale does not pay off your loan.
- Your credit takes a major hit, impacting future purchases or loans.
- You must vacate the home, often with little recourse or assistance.
Can You Stop an HOA Foreclosure?
Yes—but you need to act quickly. Here are your main options:
1. Pay Off the Debt
The simplest way is to pay the total owed—including dues, interest, and legal fees—before the foreclosure sale. Some HOAs will work with homeowners to create a payment plan.
2. Negotiate a Settlement
In some cases, the HOA may accept a reduced payment or lump-sum settlement to clear the debt and release the lien.
3. File Bankruptcy
While extreme, Chapter 13 bankruptcy can halt the foreclosure and allow you to repay the debt over time. However, this route should be carefully considered with legal counsel.
4. Sell the House Before Foreclosure
If you have equity in the home, selling it fast—even with the lien in place—is often the best way to protect your finances and avoid foreclosure.
How REI Branded Home Buyer Helps Homeowners Facing HOA Foreclosure
We’ve worked with many Washington homeowners who were shocked to learn their HOA could take their house. If you’ve received a notice of lien or foreclosure, here’s how we can help:
✅ Fast, Cash Offers
We provide fair, no-obligation cash offers—so you can sell the home quickly, settle the debt, and walk away with equity.
✅ Purchase With Liens in Place
We’re used to working with title companies and HOAs. In many cases, we’ll buy the property even if a lien is still active and resolve it ourselves.
✅ No Repairs or Agent Fees
We buy houses in any condition—and you don’t pay commissions or closing costs.
✅ Quick Closings
In HOA foreclosure situations, time is critical. We can close in as little as 7–14 days and handle all the paperwork for you.
Situations We’ve Helped Solve in Washington
- Spokane Valley home with over $4,000 in HOA fines from an unresolved paint violation
- Richland townhome with back dues dating 18 months, scheduled for auction
- Kennewick condo where the owner inherited the unit but didn’t realize dues had been unpaid for years
- Yakima subdivision property facing foreclosure due to accumulated legal costs from HOA disputes
Each of these sellers thought they had no options—but we helped them sell fast and avoid foreclosure entirely.
Why Choose REI Branded Home Buyer?
When foreclosure is looming, every day counts. We understand the unique challenges that come with HOA-related distress sales. Our experience across Washington—including Spokane, Kennewick, Pasco, Yakima, and beyond—means we can act quickly and effectively.
You’re not just a number to us. You’re a homeowner looking for a fair and dignified solution. That’s what we offer.
Areas We Serve
We buy houses in HOA neighborhoods all across Washington, including:
- Spokane & Spokane Valley
- Kennewick, Pasco, Richland
- Yakima & Ellensburg
- Moses Lake, Wenatchee, Walla Walla
- Smaller communities and rural HOAs statewide
If your HOA is threatening foreclosure, don’t wait for the auction date. Call us now.
Final Thoughts: Don’t Let HOA Dues Cost You Your Home
HOA foreclosures in Washington are real—and they’re fast. If you’ve fallen behind on dues or received a lien notice, the time to act is now. You can avoid losing your home, protect your credit, and even walk away with money in your pocket.
At REI Branded Home Buyer, we provide easy home buyer solutions for homeowners in distress, including those targeted by HOA foreclosure. Don’t fight the system alone—let us help you get out ahead of it.
Let’s Talk Before It’s Too Late
If your HOA is threatening foreclosure, reach out now for a free, private consultation and cash offer. You have options—and we’re here to help.
📞 509-769-3439
📧 info@reibrandedhomebuyer.com
🌐 reibrandedhomebuyer.com
Your home is worth saving. Let’s make a plan together.
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.