There are 22 states that give homeowners associations (HOAs) super lien status in the event of a foreclosure. What that means is that if an HOA slaps a lien on a property that is in foreclosure – such as a condominium – due to lack of payment of HOA fees in one of those states, that lien could take “first position” over all other liens or encumbrances on the property. That, in turn, could result in an investor being able to acquire the property by simply paying-off the HOA lien, resulting in a severe loss for the servicer and its investor client.
To address this problem, CoreLogic has introduced HOA Super Lien Check, a solution that helps investors and servicers monitor “at-risk” properties in the 22 states that give HOAs super lien status. Using this solution, servicers can quickly and easily identify loans in their portfolios that are within the 22 super lien states. What’s more, they can match those loans to specific HOAs, as well as validate HOA contact information, including whether there is a master association, sub-association or property management company.