About half of the states in America permit HOAs to execute non-judicial foreclosures if the home owners default in paying their dues. Moreover, these owners do not have the right to go to court with this or to challenge their associations’ board; or any of the securities provided for people to challenge creditors. In a specified time frame, an owner who is late on his payment will be sent a notice of default at first, then a letter to tell him about the sale of the house, and from there the house will be auctioned off.
In some states, the associations don’t have to send the owner a letter of default, and in some other states the associations don’t even have to have to notify the homeowner personally. “Why did someone not pick up the phone and call to inform them?” the attorney representing Anita and Tom Radcliff, a retired couple from California who only heard of the situation of things barely 30 days to eviction, in a report by MSN Real Estate. And in states where owners have to be contacted concerning the pending suits against them, all that needed to be done is to send a letter through the United States Postal Service. Some of these letters are never opened by the residents especially if they are elderly who may not be fully aware of the importance of the content of the mail they have received through normal mail delivery. They dismiss this as probably not very important and do not need their immediate attention.
Scary thoughts, but as long as you do your due diligence things like this will likely not happen to you.