Skip to main content
How to avoidForeclosure
Get help

Montana · Weigh your options

HOA and condo association foreclosure in Montana

In Montana, a condominium association can get a lien on your unit for unpaid common expenses by recording a sworn claim with the county, and it can foreclose that lien through the courts. The lien comes after property taxes and your first mortgage, and Montana gives condo dues no priority months ahead of that mortgage. These rules come from the Unit Ownership Act. For subdivision HOAs that are not condos, Montana has no general collection statute, so your recorded covenants and bylaws control.

Ask for help in Montana Free HUD counselor: (800) 569-4287

Reviewed against Montana law and official sources on October 11, 2026. General information, not legal advice.

HOA and condo collection rules in Montana, step by step

  • Which law covers your community

    Check your deed and declaration

    Condominiums are governed by the Unit Ownership Act, Title 70, chapter 23. For other homeowners associations, the only general Montana HOA statute we found limits new use restrictions on owners; it does not set lien or foreclosure rules. That law defines an HOA as one that may be allowed to impose assessments that can become a lien, which comes from the declaration.

    Mont. Code Ann. § 70-23-607; § 70-17-901

  • The condo lien requires a recorded claim

    When the association records its claim

    To get a lien, the association must record with the county a claim stating the amount due after credits, the owner's name and a description of the unit. The claim must be verified under oath by someone who knows the facts. Get a copy and check every charge.

    Mont. Code Ann. § 70-23-607(2), (3)

  • Your first mortgage comes first

    Always

    The association's lien is ahead of other liens except tax and assessment liens and a first mortgage or trust indenture of record. Montana does not give any months of condo dues priority over a recorded first mortgage.

    Mont. Code Ann. § 70-23-607(1)

  • Foreclosure goes through the courts

    After the claim is recorded

    Foreclosure of the condo lien follows, as closely as possible, the procedure for construction liens, which is a court case. The association can also sue you for a money judgment without foreclosing. If you get a summons, answer it by the deadline.

    Mont. Code Ann. §§ 70-23-608, 71-3-562

  • Rent during the foreclosure case

    While the case is pending

    If the bylaws say so, you can be required to pay a reasonable rent for the unit during the foreclosure suit, and the association can ask the court for a receiver to collect it. Unless the declaration forbids it, the association can bid on your unit at the sale.

    Mont. Code Ann. § 70-23-609

  • If your lender forecloses

    After a first mortgage or trust indenture sale

    A buyer who gets the unit through foreclosure of the first mortgage or trust indenture does not owe common expenses that came due before it took title. The unpaid amount becomes a shared expense of all owners, but you can still be sued for it personally.

    Mont. Code Ann. §§ 70-23-608(2), 70-23-610

Common questions in Montana

Can a Montana condo association take my unit without going to court?

The Unit Ownership Act says the lien is foreclosed the way construction liens are, which is by court action. We did not find a power of sale in the act, though your declaration may say something about one. Answer any court papers and call Montana Legal Services Association.

Does Montana cap HOA late fees or require a payment plan?

We did not find a Montana statute that caps HOA or condo late fees or interest, or that requires a payment plan. Your declaration and bylaws set those terms. Ask for a payment plan in writing and keep paying current dues if you can.

My Montana HOA changed its rules after I bought my home. Do they apply to me?

Since May 9, 2019, a Montana homeowners association generally cannot enforce new or amended covenants that make the allowed types of use of your property more restrictive than when you bought it, such as the ability to rent, unless you agree in writing. Ask the association to record your exception. This rule does not change what you owe in regular dues.

Step by step

More on foreclosure in Montana

Understand the process

What is happening and how much time there is.

Weigh your options

What can stop it, and what happens if it goes ahead.

Get help now

Who to call, and what to do when a sale is scheduled.

Also in Montana

Property tax foreclosure Claim surplus funds Deficiency judgments HOA and condo liens (this page)Renters after foreclosure Letters you may get

Back to the Montana overview

Free, official, nationwide

Free help anywhere in the country

Ask a question

Need help avoiding foreclosure in Montana?

Tell us where things stand. A person reads every message and writes back with the options that fit your situation and the free, official help available in Montana.

  • Free. There is nothing to buy and no fee, ever.
  • No loan number, Social Security number or documents needed.
  • We are not your lender, a law firm or a government agency.

If a sale is days away, do not wait for an email. Call a free HUD-approved housing counselor now at (800) 569-4287.

For example: a sale date, what your servicer has told you, or what changed in your income. Please do not include your loan number, Social Security number or bank details.

Free, and there is nothing to buy. A person reads your message and replies by email, or by phone if you leave a number. We never ask for a fee and we do not sell your details. See the privacy policy.

Sources for this page

  1. Mont. Code Ann. § 70-23-607, Claim for common expenses; priority of lien
  2. Mont. Code Ann. § 70-23-608, Foreclosure of lien for common expenses
  3. Mont. Code Ann. § 70-23-609, Foreclosure on unit; payment of rent
  4. Mont. Code Ann. § 70-23-610, Purchaser at foreclosure sale and prior common expenses
  5. Mont. Code Ann. § 71-3-562, Construction lien actions: limitation
  6. Mont. Code Ann. § 70-17-901, Homeowners' association restrictions
  7. Mont. Code Ann. § 71-1-319, Possession after trustee's sale
  8. Mont. Code Ann. § 70-27-104, Tenancy at will: termination by notice
  9. Mont. Code Ann. § 70-25-202, Security deposit list of damages and refund
  10. Protecting Tenants at Foreclosure Act, note under 12 U.S.C. § 5220 (govinfo)
  11. 42 U.S.C. § 1437f, Section 8 voucher leases after foreclosure (govinfo)
  12. Montana Code Annotated 2025, Title 71, Chapter 1, Part 3: Small Tract Financing Act (table of contents)
  13. Mont. Code Ann. § 71-1-312, Discontinuance of foreclosure when default paid
  14. Mont. Code Ann. § 71-1-313, Conditions for foreclosure by advertisement and sale
  15. Mont. Code Ann. § 71-1-315, Notice, sale, payment
  16. Mont. Code Ann. § 71-1-316, Disposition of proceeds of sale, surplus funds
  17. Mont. Code Ann. § 71-1-317, Deficiency judgment not allowed
  18. Mont. Code Ann. § 71-1-318, Trustee's deed
  19. Mont. Code Ann. § 71-1-222, Proceedings in foreclosure suits
  20. Mont. Code Ann. § 71-1-232, Deficiency judgment not allowed on purchase price mortgage
  21. Mont. Code Ann. § 25-13-802, Time for redemption
  22. Montana Department of Commerce, Homeowner Assistance Fund
  23. Montana Division of Banking and Financial Institutions, Consumer Information (Foreclosure Prevention)