HOA and condo association foreclosure in Wisconsin

HOA and condo collection rules in Wisconsin, step by step

• Which Wisconsin law covers your community

  Before you answer any letter

  Condominiums are governed by the Condominium Ownership Act, chapter 703 of the Wisconsin Statutes. Homeowners associations for residential planned communities are covered by Wis. Stat. § 710.18, which does not apply to condo associations. If you are in an HOA, find your recorded covenants and restrictions, because they set any lien and collection rights.

  Wis. Stat. §§ 703.01, 710.18(1)

• Condo lien: a statement must be filed within 2 years

  Within 2 years after each assessment is due

  Unpaid condo assessments, with interest and actual collection costs, become a lien only if the association files a statement of condominium lien with the clerk of circuit court within 2 years after the assessment came due. In this law, assessments include fines and charges for damage or rule violations. When you pay in full, you are entitled to a satisfaction of the lien.

  Wis. Stat. § 703.165(1), (3)

• 10 days' registered-mail notice, then a court foreclosure

  At least 10 days before filing; within 3 years after the lien is recorded

  A condo association cannot sue to foreclose its lien without first giving you 10 days' written notice by registered mail, return receipt requested. It must foreclose the same way, and under the same requirements, as a mortgage foreclosure in Wisconsin, and it must sue within 3 years after recording the statement of lien. It can recover costs and actual attorney fees and can seek a deficiency in the same case.

  Wis. Stat. § 703.165(7)

• No priority over an earlier first mortgage

  If the association forecloses

  A condo lien comes after property taxes and after all sums unpaid on a first mortgage recorded before the assessment was made. Wisconsin has no super priority for association dues, so your mortgage generally stays in place and you still owe it.

  Wis. Stat. § 703.165(5)

• Ask for a payoff statement

  Answer due within 10 business days

  A condo owner or HOA lot owner can ask in writing for a payoff statement for a date up to 30 days away, and the association must provide it within 10 business days. The first one in any 2-month period is generally free, and extra ones cost no more than $25 each, unless the association adopted a fee by the steps the law requires.

  Wis. Stat. §§ 703.335, 710.18(7)

• HOA notice filing: no late fees while out of compliance

  Annually, with the Department of Financial Institutions

  Every homeowners association must file a public notice with the Department of Financial Institutions and renew it each year. Until it does, it cannot charge a late fee or fine on unpaid assessments, and any such fee charged during that time is void and unenforceable. Before suspending any of your rights for unpaid assessments, an HOA must send written notice of what it plans to suspend and how you can avoid it.

  Wis. Stat. § 710.18(3)(f), (6)

Common questions in Wisconsin