Receiving a formal letter from your Homeowner Association (HOA) is stressful, but you can resolve it.

This guide provides a step-by-step approach for Texas homeowners to stop HOA foreclosure in Texas. HOAs have significant power in the Lone Star State, but you have rights under Texas law to protect your home.

Your first step toward finding a solution is understanding these rights and the foreclosure process. Let's walk through what you can do to address this situation.

Understanding HOA Power in Texas: Can an HOA Foreclose?

Yes, an HOA in Texas can foreclose on your home for unpaid assessments and related charges, but this power is governed by state laws that protect homeowners.

Legal Foundation: Texas Property Code Chapter 209

Texas Property Code Chapter 209 governs HOAs in Texas, establishing rules for assessment collection, notices, and foreclosure.

The law grants HOAs the authority to place a lien on a property for unpaid dues, initiating the foreclosure process and creating a legal claim against your property. Chapter 209 also provides crucial homeowner protections that we will explore throughout this article.

What Can an HOA Foreclose For?

Texas HOAs can foreclose for specific reasons, but not everything:

• Foreclosure for: Unpaid regular assessments (monthly, quarterly, or annual dues)
• Can foreclose for: Voted and approved
• Cannot foreclose for: Fines for violations (like lawn maintenance) alone.
• Cannot foreclose using expedited methods for: Purely punitive fines unrelated to assessments.

HOA can initially foreclose for unpaid assessments, but late fees, collection costs, and attorney's fees can increase the total owed, making the lien larger over time.

Expedited vs. Judicial Foreclosure in Texas

In Texas, an HOA can pursue foreclosure in two main ways:

Judicial Foreclosure: The most common HOA foreclosure path. The association must file a lawsuit and obtain a court order before proceeding with a foreclosure sale, providing you with formal notice and a chance to respond in court.

Expedited Foreclosure (Rule 736) is a faster process for foreclosure without a full lawsuit. It is used in specific situations and requires a court application. Texas law restricts HOAs from using this expedited process for foreclosures based solely on fines for rule violations.

You'll receive legal notices and have chances to resolve the debt before losing your home.

Texas HOA Foreclosure Process: A Step-by-Step Timeline

Understanding the HOA foreclosure process in Texas can reduce your anxiety and help you identify the best moments to act. Here's the typical process:

Step 1: Delinquency and Initial Notices

The process begins when you fall behind on your HOA dues. Once delinquent, you'll start receiving notices from your HOA or their management company. These initial communications will:

• Specify the amount owed
• Include added late fees
• Provide a payment deadline.
• Explain consequences of continued non-payment.

These early notices are often sent via regular mail and seem like routine bills rather than the start of a serious legal process.

Step 2: The Assessment Lien

In Texas, an HOA lien is automatic when you fall behind on payments. This means the lien exists based on the Covenants, Conditions, and Restrictions (CC&Rs) you agreed to when purchasing your home, even without additional paperwork.

Most HOAs will file a formal "Notice of Lien" in the county property records to make the lien public. This document establishes their claim against your property and is the foundation for potential foreclosure action.

Step 3: Formal Notice and Right to Cure

Before foreclosure, Texas law requires HOAs to send specific pre-foreclosure notices via certified mail. These notices must:

• Clearly state the amount owed with a detailed breakdown.
• Inform you of your right to "cure the default" (pay what you owe to stop the process)
• Allow 30 days to resolve the debt before further action.
• Sent to your last known address

This 30-day window is a critical opportunity to resolve the issue before the HOA can take legal action. The notice must inform you of your right to request a payment plan if the HOA offers one (most are required by law).

Step 4: The Lawsuit and Court Order

If you don't resolve the debt during the notice period, the HOA's attorney will file a lawsuit seeking judicial foreclosure. You'll be formally "served" with legal documents that:

• State the HOA's claims against you.
• Detail the amount owed.
• Request the court's permission to foreclose.

After being served, you'll have a limited time (20-25 days) to file a written answer with the court. If you don't respond, the HOA may obtain a default judgment against you, moving the process closer to foreclosure.

Step 5: The Foreclosure Sale

If the court rules in the HOA's favor, it will issue an order allowing foreclosure. The property will then be scheduled for public auction, typically on the first Tuesday of the month at the county courthouse.

The HOA must notify the sale date, time, and location. At the auction, your home will be sold to the highest bidder, who will receive a deed. After the sale, you have important rights in Texas, including potential redemption rights.

Your Rights as a Texas Homeowner Facing an HOA

Good news: Texas law provides homeowners protections against aggressive HOA foreclosure tactics. Understanding these rights is essential to protect your home.

The Right to "Cure the Default"

Before an HOA can foreclose, they must give you a chance to pay what you owe and get current. This "right to cure" is a powerful protection. Even if the foreclosure process has begun, you can stop it by paying the full amount owed, including reasonable costs and attorney's fees.

Texas law requires the HOA to provide clear information about:

• The exact amount needed to cure the default.
• How to make payment
• The payment deadline to stop foreclosure proceedings.

Right of Redemption (Post-Foreclosure)

Texas law gives you time to "redeem" or buy back your property, even if your home is sold at a foreclosure auction. For HOA foreclosures, this redemption period is typically:

• 180 days for property with a dwelling
• 90 days for property without a dwelling

During this redemption period, you can reclaim your home by paying:

The amount paid at the foreclosure sale

• Foreclosure costs
• Interest on the purchase price
• Certain expenses incurred by the purchaser

This right of redemption provides a final safety net; exercising it can be financially challenging.

Protection Against Non-Judicial Foreclosure for Fines

Texas law prohibits HOAs from using expedited (non-judicial) foreclosure processes solely for fines related to rule violations. If your only debt to the HOA consists of fines for violations like improper lawn maintenance, incorrect house color, or other CC&R infractions, they cannot use the faster foreclosure methods.

This protection forces HOAs to go through the full judicial process, giving you more time and opportunities to resolve the issue.

Your Action Plan: How to Stop an HOA Foreclosure in Texas

Now that you understand the process and your rights, here's your action plan to stop an HOA foreclosure:

Step 1: Don't Ignore Notices - Open All Mail

The biggest mistake homeowners make is ignoring HOA communications. Every notice shortens your timeline to act, and ignoring certified letters doesn't stop the legal process; it reduces your opportunity to respond effectively.

Immediately open everything, read it carefully, note all deadlines, and keep all documents in a dedicated folder. These notices contain critical information about your debt, payment deadlines, and legal rights.

Step 2: Review Your HOA's Governing Documents (CC&Rs)

Get your Covenants, Conditions, and Restrictions (CC&Rs) and bylaws. If you don't have them, request them from your HOA or check your county property records office.

Review these documents to understand:

• HOA late fees and interest
• The specific collection procedures your HOA must follow
• Required notice periods before legal action
• Available payment plan options

Knowing these rules helps you identify if the HOA is following proper procedures and gives you leverage in negotiations.

Step 3: Communicate with Your HOA Board

Proactive communication is essential. Contact your HOA board or management company in writing (email provides a good paper trail) to:

• Acknowledge the situation
• Express your desire to resolve the matter.
• Request a detailed accounting of your debt.
• Inquire about payment plan options.

Be professional and courteous, even if you're frustrated. A reasonable, communicative homeowner is more likely to receive flexibility than one who seems confrontational or disengaged.

Step 4: Propose a Payment Plan

Texas law requires most HOAs to offer reasonable payment plans to delinquent owners. If one has not been offered, formally request a payment plan in writing.

When proposing or negotiating a plan:

• Be realistic about what you can afford monthly.
• Get any agreement in writing.
• Specify handling of future regular assessments.
• Confirm the HOA will not pursue foreclosure while you are complying with the plan.

A payment plan can help you gradually pay off HOA debt while protecting your home.

Step 5: Dispute Invalid Charges

Request an itemized ledger of all charges, payments, and fees. Review for:

• Incorrect amounts
• Improper late fees
• Charges for violations you didn't commit
• Mathematical errors

If you find discrepancies, dispute them in their writing with evidence. For example, if they claim you didn't pay for a month but you have a canceled check, provide a copy as proof.

Step 6: Seek Legal Counsel

If the amount is substantial or the HOA is proceeding with foreclosure despite your efforts to resolve the situation, consult an attorney specializing in HOA disputes. Legal representation is crucial if:

The HOA has filed a lawsuit.

• You believe the HOA is violating Texas law.
• Complex disputes about the amounts owed exist.
• You need to negotiate complex payment arrangements.

An experienced attorney can help you understand your options and identify unknown defenses. Contact the State Bar of Texas Lawyer Referral Service to find a qualified Texas attorney.

Financial and Alternative Solutions to Avoid Foreclosure

If direct negotiation with your HOA isn't resolving the situation, consider these financial strategies and alternatives before foreclosure:

Exploring Financial Assistance Programs

Depending on your situation, you qualify for:

• Local homeowner assistance funds through your county or city
• Non-profit credit counseling services to help you create a budget and debt management plan.
• Hardship programs through your mortgage lender that may free up funds to pay HOA debts

Research these options through your local housing authority or a HUD-approved housing counselor.

Considering a Home Equity Loan or Refinancing

If you have enough equity in your home, consider:

*A small home equity loan to pay off the HOA debt.*

* Refinancing your mortgage to include the HOA debt and lower your monthly payments.

Before pursuing either option, consider the costs and risks of new debt. These strategies make sense when the HOA debt is substantial and your overall financial situation is stable.

Selling Your Home to Resolve the Debt

For some homeowners, selling the property is the most practical solution. This isn't a defeat; it's a proactive choice that allows you to:

• Pay off the HOA lien and mortgage
• Protect your credit from a foreclosure record
• Walk away with any remaining equity
• Start fresh without the ongoing stress.

A traditional home sale is an option, but it comes with challenges when you're facing a tight timeline. You'll need to make repairs, stage the home, host showings, and wait for financing approvals, all while the foreclosure clock is ticking.

If you need to resolve the situation quickly, consider a direct cash sale of your home. Companies like GetHomeCash specialize in these situations. We buy houses 'as-is', meaning no repairs, and can close in 7 days. This allows you to settle the HOA debt, avoid foreclosure, and move forward without a traditional sale. We handle all the paperwork for selling a house with a lien, and there are no agent commissions or fees.

FAQs

What late fees can an HOA charge in Texas?

HOA late fees depend on your HOA's governing documents and must be "reasonable" under Texas law. Typical fees range from $25 to $50 per month or a percentage of the unpaid assessment (often 10-18% annually).

Can I fight an HOA foreclosure in court?

Yes. If the HOA sues, you can file an answer and present defenses like improper notice, inaccurate charges, or procedural errors. An attorney can help identify valid defenses and represent you effectively, potentially presenting alternatives to a lengthy legal battle.

How long do I have to redeem my home after an HOA foreclosure in Texas?

In Texas, HOA foreclosures allow a 180-day redemption period for properties with a dwelling. This requires paying the full foreclosure sale purchase price plus costs and specified expenses.

What happens to my mortgage if the HOA forecloses?

Many homeowners don't understand this critical point. The primary mortgage is usually "superior" to the HOA lien. If someone buys your home at an HOA foreclosure sale, they take the property subject to your original mortgage. The mortgage doesn't disappear; the new owner becomes responsible for it or risks foreclosure by the lender. This complexity often deters third-party bidders at HOA foreclosure auctions.

Conclusion

Facing an HOA foreclosure is stressful, but Texas homeowners have significant rights and resolution options. Act quickly, communicate professionally in writing, and understand your rights, especially to cure the default and your redemption rights.

Act quickly to address the situation for more options. You can stop foreclosure in Texas and protect your financial future by negotiating a payment plan, disputing charges, seeking legal help, or exploring alternatives like a property sale.

Take that first step now. Open those notices, understand what you owe, and contact your HOA to start the conversation.