HOA Liens: One of the Best Overlooked Sources of Short-Sale Leads

We discussed the rapidly increasing number of HOA liens in last month’s newsletter, but I want to revisit the subject because it is that important.

Most real estate agents looking for distressed homeowners begin by searching foreclosure filings, notices of default or lis pendens.

The problem?

By the time those documents appear, the homeowner has already been experiencing financial problems for months – possibly years.

In some cases, the mortgage is already six months or more delinquent before foreclosure proceedings begin.

But there’s another public record that may appear considerably earlier.

HOA and condominium association liens.

An association may begin collection activity after only a few missed assessments or even a single fine. Depending on state law and its governing documents, it may record a lien or pursue additional remedies much earlier than the mortgage servicer initiates foreclosure.

That creates an early-warning OPPORTUNITY!

Think about it.

When homeowners begin having financial problems, they’re forced to make decisions about which bills they’re going to pay.

The mortgage, food, utilities, insurance, vehicle payments and other living expenses may take priority over association dues.

In many cases, the HOA assessment is one of the first payments to fall behind.

That doesn’t automatically mean the homeowner is delinquent on the mortgage.

But it absolutely means you should investigate whether they may need help.

Where to find these leads

HOA liens and related foreclosure actions may be available through county recorders, clerks of court, public-notice websites, legal advertisements and property-data services.

Start by learning how associations record liens in your market.

Search for association names and the attorneys who regularly represent them.

Then research the property, estimated equity, mortgage history and other available public information.

The point is to identify homeowners who may need assistance before every other agent discovers they’re in trouble.

And when you contact those homeowners, remember what we teach in the CSSE marketing course.

You’re not calling to accuse someone of missing their mortgage payments.

You’re reaching out as a professional who helps homeowners understand their options when financial problems, association liens or other property-related obligations make it difficult to keep or sell their homes.

Lead with education and assistance.

This is the type of specialized business that separates a trained Certified Short Sale Expert from an agent simply chasing foreclosure lists.