What are super liens? Well they are a very real looming threat from the mortgage industry in areas where state laws allow community associations so-called “super-priority liens” on dwellings whose owners have not paid their assessments. Simply put, that allows the HOA to be paid first if the home transfers or is foreclosed upon.
Many lenders will refuse to write mortgages for properties in HOAs that have delinquency rates of more than 25 percent. The idea is simple, people failing to pay can result in the community or project becoming an eyesore and not adequately maintained. In attached home communities, this can be a major issue as often times exterior maintenance, paint, roof maintenance and other critical items are dependent upon dues collected.
As of now, 22 states permit super liens to be filed and they are having an impact. Find out more as the Hank Miller Team reviews Super Liens - Revenge of the HOA
