HOA glossary · L
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.
Related terms
- HOA LienAn HOA lien is a legal claim an association places on a homeowner's property when dues or fees go unpaid, securing the debt until it's paid.
- Lien NoticeA lien notice is a formal warning that an HOA can place a legal claim on a property when a homeowner doesn’t pay their dues or fees.
- HOA ForeclosureHOA foreclosure is the legal process an association can use to recover unpaid dues or fees by forcing the sale of a homeowner’s property.
- Accounts ReceivableHOA accounts receivable are funds owed but not yet paid to a homeowners association, including assessed dues, fees, and fines.
