Is Your Homestead Protected Against HOA Liens?
No. Your homestead is not protected against HOA liens and judgments.
While the Florida homestead protects your property from creditors, there are exceptions. One of the exceptions is a consensual (voluntary) lien.
A mortgage is an example of a consensual lien. When a homeowner secures the repayment of a loan by giving the lender a mortgage the homeowner has agreed by contract to waive homestead protection. If that were not the case few people in Florida could finance the purchase of their homestead.
By law, homeowners associations also have consensual liens on houses in their respective subdivisions. An HOA can impose a lien on your property for unpaid dues and assessments.
Although the dues and assessments may initially be small, Florida law provides the HOA the right to add attorney fees incurred in collecting unpaid amounts.
Law firms working for HOAs have been known to pile on attorney fees. A relatively small assessment, with fees added, can become a significant lien on your home.
If the lien is not paid, the HOA has the right to foreclose, just as a bank can foreclose an unpaid mortgage.
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