If you fail to pay your homeowners’ association (HOA) or condominium owners’ association (COA) assessments, the association might be able to sell your home at a foreclosure sale. The association will then use the sale proceeds to repay the amount you owe.
But you might be able to get your home back after the sale. Some states have a law that allows foreclosed homeowners to “redeem” the home following an HOA or COA foreclosure.
Redeeming the home undoes the foreclosure, and you regain ownership of the property.
Can I Get My Home Back After an HOA or COA Foreclosure?
Homeowners in a few states get the right to buy back (redeem) their property after an HOA or COA foreclosure during what’s called a “redemption period.” The amount of time a foreclosed homeowner gets to redeem the home, if state law provides a redemption period, varies from state to state.
Factors Affecting the Redemption Period
State law sometimes sets out different redemption periods based on the circumstances. A few factors that might affect the length of the redemption are:
- whether the property is part of an HOA or part of a COA
- whether the foreclosure is nonjudicial or judicial, and
- whether the homeowner abandons (permanently moves out of) the property before the foreclosure ends.
How Much Does It Cost to Redeem Your Home After Foreclosure?
Typically, to redeem the property, a foreclosed homeowner has to pay:
- the overdue assessments or the price the buyer at the foreclosure sale paid
- interest, and
- attorneys’ fees and costs.
Right to Redeem After Foreclosure in General
Even if state law doesn’t provide a specific right to redeem after an HOA or COA foreclosure, many states have a law that allows homeowners to redeem following a mortgage or deed of trust foreclosure. That general law might apply to HOA and COA foreclosures, too.
How to Avoid Foreclosure in the First Place: A Payment Plan
If you’re behind in paying assessments to an HOA or COA and can’t afford to get caught up, you might be able to negotiate a payment plan with the association. That way, you can pay the amounts you owe in installments and avoid a foreclosure.
It’s a good idea to contact your HOA or COA as soon as you fall behind in assessments—before a foreclosure begins—to arrange a payment plan.
Getting Help Redeeming Your Home After an HOA or COA Foreclosure
HOA and COA laws are different in each state. If you lost your home to a foreclosure because of unpaid association assessments, consult with an HOA attorney or a foreclosure lawyer in your state to find out whether state law provides a redemption period in your circumstances.
If you need information about various ways to avoid a foreclosure, consider talking to a foreclosure lawyer and a HUD-approved housing counselor.