Lien Priority

What is lien priority in an HOA context?

Lien priority determines the order in which debts are paid during a foreclosure. HOA liens often rank below mortgage or tax liens.

Why is lien priority important?

It affects the likelihood of collecting unpaid dues. Lower-priority liens may not be paid in full. Understanding lien priority helps boards determine when it’s worth pursuing legal action and when alternative approaches, such as payment plans or small claims court, might be more effective or economical.

How can you use “lien priority” in a sentence?

Due to lien priority rules, the HOA recovered only a portion of the unpaid dues after foreclosure.