HOA and condo association foreclosure in Virginia

HOA and condo collection rules in Virginia, step by step

• Which Virginia law covers your community

  Before you answer any letter

  Homeowners associations in lot developments are governed by the Property Owners' Association Act (Va. Code title 55.1, chapter 18). Condos are governed by the Virginia Condominium Act (chapter 19). Their lien and foreclosure sections are almost the same, with different filing deadlines and priority wording.

  Va. Code §§ 55.1-1833, 55.1-1966

• A certified letter, then a recorded memorandum of lien

  At least 10 days before the HOA files; within 12 months (HOA) or 90 days (condo) of the first missed assessment

  A property owners' association must send you a certified letter at least 10 days before it files a memorandum of lien in the circuit court clerk's office. The HOA must file within 12 months after the first unpaid assessment came due, and a condo association within 90 days. If the association misses its deadline, the lien for those assessments is not perfected, though it can still sue you for the money.

  Va. Code §§ 55.1-1833(B), (C), (H); 55.1-1966(C), (G)

• No foreclosure unless the lien secures more than $5,000

  Before any sale is scheduled

  An association can hold a court or nonjudicial foreclosure sale only if the perfected liens secure more than $5,000, not counting attorney fees and costs. It must start any foreclosure within 120 months after the memorandum of lien was recorded.

  Va. Code §§ 55.1-1833(E), (I); 55.1-1966(D), (I)

• 60-day notice, then advertising and a sale notice

  At least 60 days before a trustee can be appointed; sale notice at least 14 days before the sale

  For a nonjudicial sale, the association must first send a notice stating the debt, what you must do to pay it, a deadline at least 60 days away, and that you can file a case in circuit court to dispute the debt or raise any defense. After that, it can appoint a trustee, advertise the sale in a newspaper, and send you notice of the time, date and place of the sale. A sale that breaks the advertising rules can be voided by the court on petition.

  Va. Code §§ 55.1-1833(J), 55.1-1966(J)

• You can stop the sale by paying before it happens

  Any time before the sale

  If you pay the debt secured by the lien plus the costs of perfecting and enforcing it, including advertising and reasonable attorney fees, before the sale date, the association must stop the foreclosure. Ask in writing for an exact payoff figure. Virginia law does not require the association to offer a payment plan, so check your declaration and ask the board in writing.

  Va. Code §§ 55.1-1833(J)(3), 55.1-1966(J)(3)

• Violation charges are capped and count like assessments

  After written notice and a hearing

  Before charging you for a rule violation, the association must give written notice and a chance to fix it, then at least 14 days' certified notice of a hearing where you can bring a lawyer. Charges cannot exceed $50 for one offense or $10 a day for a continuing one, for no more than 90 days, and they are treated as an assessment for lien purposes. The association can also suspend services it provides directly, including utilities, when assessments are more than 60 days past due, if its documents allow it and it does not endanger health or safety.

  Va. Code §§ 55.1-1819, 55.1-1959

• Your mortgage stays ahead of the association

  If the association forecloses

  An HOA's perfected lien comes after any mortgage or deed of trust recorded before the lien was perfected. A condo lien comes after first mortgages held by institutional lenders that were recorded first. You still owe your mortgage after an association sale, so keep paying it.

  Va. Code §§ 55.1-1833(A), 55.1-1966(A)

Common questions in Virginia