In nearly two dozen states, HOA liens resulting from delinquent homeowner dues can supersede first and second mortgages. With over 27 million housing units in the U.S. subject to an HOA, this presents a significant risk to servicers and investors1.
Identifying loans in a portfolio can be challenging. At-risk properties can be easily overlooked because of varying judicial and non-judicial state processes. Yet, with the current COVID-related economic conditions and foreclosure moratoriums ending this year, servicers and investors need to be more diligent than ever in mitigating HOA super lien risk.
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Identifying HOA liens or unpaid dues is essential to mitigating risk and minimizing losses. Black Knight’s HOA Lien Pro provides an efficient, cost-effective way to identify super-lien risk. The solution automatically monitors a servicer’s portfolio and identifies open HOA liens and foreclosure activity.
HOA Lien Pro also provides critical information, such as lien-recording dates, document numbers, party names and court case numbers so servicers and investors can proactively manage risk and cure HOA payment delinquencies before it’s too late.
In 21 states plus the District of Columbia and Puerto Rico, HOAs may foreclose on a lien. However, some states are not defined as super lien states, but allow an HOA to foreclose on a property if specified in the association’s governing documents.
Download our complimentary eBook today to see how you can protect your portfolio from HOA liens.
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1: Foundation for Community Research, 2019-2020 U.S. National and State Statistical Review For Community Association Data