TL;DR:
- The Trap: In "Super Lien" states (NV, CO, DC, etc.), HOA debts take priority over your mortgage. If they foreclose, the bank loses its lien, and you lose the house.
- The Solution: Never ignore an HOA demand. Pay the "super-priority" portion immediately to stop the foreclosure clock, then fight the fines later ("Pay Under Protest").
The $1,200 House: How It Happens
You owe the bank $400,000. You owe the HOA $1,200 for "unapproved paint color" and late fees. Logic suggests the bank has the power. Logic is wrong.
In over 20 US jurisdictions, HOAs possess "Super Lien" status. This grants their lien higher priority than the first mortgage for a specific period of assessments (usually 6-9 months).
When the HOA forecloses on this super-priority portion, it wipes out the mortgage.
The buyer at the auction (often a hedge fund) gets your $500,000 home for the cost of the HOA debt (plus legal fees). The bank gets nothing. You get evicted.
The "Non-Judicial" Speed Run
The scariest part? In states like Nevada and California, this happens without a judge.
It is called Non-Judicial Foreclosure.
- Notice of Delinquent Assessment: Recorded against your title.
- Notice of Default: Sent 30 days later.
- Notice of Sale: Posted on your front door.
- Auction: Sold on the courthouse steps 21 days later.
There is no hearing. No "your honor." Just an auctioneer and an investor with a cashier's check.
The Kill List: Super Lien States (2026)
If you own property in these jurisdictions, you are in the danger zone. This is not an exhaustive list, but these are the primary offenders where "Super Lien" statutes are aggressively enforced:
- Nevada (The epicenter of Super Lien case law)
- Colorado
- Washington, D.C.
- Massachusetts
- Maryland
- Illinois
- Delaware
- Florida (Limited "statutory" liens, but high foreclosure rates)
Data Point: In Colorado, HOA liens jumped 146% in late 2025. This is an organized revenue strategy, not an accident.
The Precedent: SFR Investments v. U.S. Bank
Think the bank will save you? They tried. In the landmark case SFR Investments Pool 1 v. U.S. Bank, the Nevada Supreme Court ruled that a properly conducted HOA foreclosure extinguishes the first deed of trust.
Banks are now terrified of HOAs. If you stop paying your dues, the bank might pay them for you and add it to your mortgage balance—often with a 50% "preservation fee" tacked on.
Strategic Defense: "Pay Under Protest"
If you receive a Notice of Default from an HOA, do not argue the validity of the fine. That is a trap. Arguments take months; foreclosures take weeks.
The Protocol:
- Request the Ledger: Demand a breakdown of "Super Priority" vs. "Sub Priority" debt.
- Tender Payment: Write a check for the super priority amount (usually 9 months of assessments). Mark it "Paid Under Protest - Priority Lien Satisfaction Only."
- File an Injunction: Once the priority lien is paid, the HOA loses the power to wipe out the mortgage. They can still sue you, but they can't easily sell your house.
Comparison: Who Wants Your House?
| Feature | Bank Foreclosure | HOA Super Lien Foreclosure |
|---|---|---|
| Trigger Amount | Usually >$10,000 (3+ missed payments) | As low as $500 (depends on state) |
| Speed | 1-2 Years (Judicial backlogs) | 3-4 Months (Non-Judicial) |
| Outcome | Bank sells home, pays off debt | Mortgage is Deleted, Investor takes title |
| Defense Cost | High (Bankruptcy/Litigation) | Low (Pay the fine, argue later) |
Your Next Move
Check your mail. If you see a certified letter from a law firm you don't recognize, open it. It’s not a bill; it’s an eviction notice from the future.
- Audit Your Title: Check our Asset Protection guide to see if you have unknown liens.
- Verify State Laws: Google "[Your State] HOA Super Lien Statute 2026".
- Get Counsel: If you are in default, Contact Leon Staff immediately. We can connect you with defense counsel who understands the SFR precedent.