What happens to an HOA lien during a bank foreclosure in Texas

Question

I'm getting some mixed answers from my local people so I figured I would chime in here. As the title says what happens to an HOA lein during a typical auction in Texas. Not a tax auction, an auction where the owner quit paying their mortgage and the bank is foreclosing at the courthouse. I was under the assumption that the foreclosure wipes the HOA lien. However, someone said that it depends on the HOA (if they want to enforce it) and the type of loan (fha vs conventional). Also if it is true they can survive a foreclosure, how can you go about determining it.

Can anyone set me straight on this?

Thanks

Mike Landry

Houston texas, montgomery harris counties

Can anyone set me straight on this?

Thanks

Mike Landry

Houston texas, montgomery harris counties

Ron S. · Answer

HOA liens survive. Some are capped to a maximum amount (Depends on the state) but they do survive the foreclosure.

Mike Landry · Answer

texashoalaw.com has some good info. Here is what I figured out!

It depends!

Hoa liens are senior to mortgages generally, but in almost all cases the hoas will allow the purchase money mortgages to take a more senior position.  This exception is due to the banks fear of losing their investment and not wanting to fund the property.  So the answer lies in the hoa declarations information and public records...

Mike Landry · Answer

Thanks Jessica and Ronnie.  I'm looking at an auction property with a $11,000 hoa lien on it from what I can tell.  I tried contacting the HOA and no one has gotten back with me.  It definitely makes a difference on my numbers.....

Ronnie Sparrow · Answer

Don't know Mike, Sounds like maybe an attorney can chime in here and set us all straight.

Jessica Martin · Answer

I would guess it's wiped out. Just guessing though. Great question.

Mike Landry · Answer

come on all you Houston Texas auction peoples, just point me in the right direction.  I'm willing to dig for the answer, i just don't know where to look.