Foreclosure can be complicated, especially if your homeowner’s or property owner’s association is foreclosing. New Jersey is a super lien state, which impacts lien priority in foreclosure.
If you live in a condominium or house with an HOA or POA and are behind on payments or facing foreclosure, lien priority will come into play during your foreclosure. It’s important to understand what super liens are and how they work in New Jersey.
When facing foreclosure, an attorney can help you through the process. Joshua Denbeaux is a New Jersey foreclosure attorney dedicated to protecting homeowners’ rights.
Contact Denbeaux Law today to learn more about the foreclosure process and how we may be able to help you.
What Is an HOA Super Lien?
An HOA super lien deals with lien priority in a foreclosure. Lien priority determines the order in which liens on a property are paid back.
A super lien means that the lien will always take first priority over other liens. An HOA super lien jumps traditional lien order.
Typical lien priority places first mortgages as the priority in a foreclosure. In a super lien state like New Jersey, HOA or POA liens take priority over mortgages.
What Does Having a Super Lien Mean?
A super lean means your HOA or POA may be more likely to foreclose. With traditional lien priority, HOAs and POAs would have low priority and may not be repaid in foreclosure.
Since New Jersey is a super lien state and HOA liens will get paid first in foreclosure, they may be more likely to pursue foreclosure because they know that they’ll get paid. While it’s less likely that a single missed year will result in foreclosure, missing multiple years with interest and fees can rack up debt quickly. When the balance of overdue fees is high enough, the HOA is more likely to pursue foreclosure in New Jersey than in other states.
Can a Lender Foreclose on a Super Lien Foreclosure?
Your mortgage lender can still foreclose on your home if you have an HOA debt in a super lien state. However, it will most likely be a slightly different process than a typical foreclosure.
Your lender may pay off your HOA lien before foreclosing to stop the HOA foreclosure or retain their place as the first priority lien holder.
If your lender pays off your HOA lien as part of the foreclosure process, they will most likely add that to the amount you owe. You will still owe the same total amount, but your lender will be able to ensure that they get paid back first.
Talk To an Attorney About Navigating Super Lien Foreclosure
Facing foreclosure with multiple liens, such as HOA debt and late mortgage payments, can be stressful and difficult to navigate. Super lien states can make foreclosure with multiple liens even more confusing.
Understanding lien priorities and how they directly impact your foreclosure situation can be difficult. There are options available that may be able to help you stop or avoid foreclosure, even with multiple liens on your home. Knowing that you must deal with multiple foreclosure sources can also save your home if you’re unaware.
An experienced foreclosure attorney can help walk you through all of your options to avoid foreclosure. Depending on your specific situation, some options may be a better fit.
Contact Joshua Denbeaux today to learn more about HOA foreclosure and how we may be able to help you keep your home.
