One of the benefits of living in a homeowners association (HOA) is having an organization behind you to ensure that your home, your neighborhood, and your community are all in good repair and well-maintained. And you pay a pretty penny for those perks by way of monthly or annual dues that go towards funding all of the things that make HOAs so great.
However, HOAs across the country are cracking down on the people who aren’t paying those dues, and taking their homes in the process. The Wall Street Journal reports that HOAs are struggling to make ends meet. So to help alleviate some of their own financial hardships, they are going after those homeowners who owe them money. This has resulted in a nearly 40 percent jump in HOA-related foreclosures.
And it’s not just one type of neighborhood facing the increase in aggressive collection practices. The Wall Street Journal reports that community types range from high-end neighborhoods all the way down to suburban communities.
Unfortunately, homeowners are getting caught in the crosshairs, and many of them are losing their homes as a result.
The Increase in HOA Collection Activity Has Been on the Rise for Years
According to Fox Business, HOAs filed around 284,933 liens in 2025, which worked out to be around one every 90 seconds. That is an 8.6 percent increase from the prior year.
Queen City News reports that this year’s numbers are looking even worse, with nearly 6,500 HOA-related foreclosures taking place within the first three months of 2026, a figure that is up 40 percent from just two years ago.
It seems like this has been in response to a national trend of underfunded HOAs, which have left the HOAs themselves in danger of not having the funds they need to pay for things like capital projects or routine repairs and maintenance.
HOAs Used to Extend Grace Periods, but Now They Are Quick to Collect
Fox 2 KTVU reports that HOAs are moving faster on delinquent accounts than previously, no longer offering grace periods and instead reaching out to their attorney to move the process along. So, what should you do if you’ve fallen behind on your HOA dues?
According to Steiner Law Group, falling behind on your dues can have immediate consequences, including the assessment of late fees. After that, you may receive a notice of delinquency, which will break down what you originally owed, what late fees were added, and a timeline for additional action if you don’t pay by the deadline.
After that, you’ll typically start seeing things escalate pretty quickly, either with collection agencies or liens. And in some states, your HOA can actually use that unpaid lien to force your home into foreclosure, allowing them to collect the payment on the balance owed.
If you can’t afford your HOA dues, your first call should likely be to your HOA board to find out if they will be willing to extend you a grace period, or if there are any options for financial assistance. If not, you may want to do some research into what the laws are in your state to see if you live in an area where the HOA can actually take your home as a result of these unpaid dues.