Homeowners associations are foreclosing on more residents, with HOA foreclosures rising nearly 40% in two years to 6,376 properties in the first quarter. The increase has pushed more delinquent owners into a process that can end in an auction, a sheriff’s sale or a redemption period, depending on the state and the case.
HOAs have also filed over 285,000 liens in 2025, up about 8.8% from a year earlier. Brian Fox, co-founder of Benutech, said, “HOAs are being forced into more aggressive collections to avoid their own financial collapse.”
Kirk Pearson on auction sales
Kirk Pearson, an attorney who represents homeowners in HOA disputes, said the foreclosure process can still leave a narrow path back for some owners. “If the property is sold at auction, the homeowner has a 90-day right to redemption where they can buy the property back by paying any delinquent amounts plus any collection fees and costs,” he said.
That sequence can turn a missed payment into a much larger bill. The account can move from dues to liens, then to attorneys, then to sale, and collection fees and legal costs can become part of the amount the homeowner has to clear.
Pennsylvania and redemption
Stephen M. Hladik, a Pennsylvania-based mortgage foreclosure legal practice attorney, said the rules differ in Pennsylvania. “In some states, like Pennsylvania, the homeowner has no ‘right of redemption,’ which means at the fall of the hammer at a sheriff’s sale, the homeowner no longer has a right to pay off the debt,” he said.
That leaves the practical next step to the state’s foreclosure rules and the auction process itself. In Pennsylvania, the sheriff’s sale can end the owner’s ability to pay later and reclaim the property through redemption.
Magnolia Cove and Long Island
The pressure behind those collections is visible in individual communities. Families in Magnolia Cove saw monthly homeowners association dues rise from $350 to $1,250 and were also hit with a $10,000 special assessment.
At one Long Island HOA, the annual insurance premium surged to $360,000 from $60,000 after the partial collapse of the Champlain Towers South condo in 2021 led to stricter safety measures. Higher insurance, reserve strain and safety spending are leaving HOAs with less room to absorb missed payments, so delinquent accounts are moving faster into enforcement.
For homeowners, the immediate question is whether the debt can be paid before auction or sale, because the collection stack can add costs faster than the original dues. Once a property reaches the sale stage, the rules that apply after the hammer falls determine whether a homeowner still has a chance to redeem it or loses that option altogether.
