New legislation at the state level could curtail some of the powers of homeowners associations across the state, according to WRAL.
Current Rules. Most HOAs can claim a lien on someone’s property for any amount of money that is 30 days past due. After 90 days, it can start foreclosure proceedings.
What Would Change. A pair of proposals, if enacted into law, would slow the foreclosure process significantly..
- Proposal One: HOAs would be required to enter mediation with homeowners before filing a civil action.
- Proposal Two: Another proposal would limit HOAs’ ability to foreclose on properties of members with unpaid dues or fees. HOAs would be prohibited from foreclosing on a house to enforce a lien for unpaid assessments unless specific conditions are met.
Members of the House Select Committee on Homeowners’ Associations also want to ensure that big increases in HOA dues don’t catch homeowners by surprise.
Read More at WRAL
