Investors Beware: HOA Foreclosures Are on the Rise and Increasingly Difficult to Stop

If you own a rental condo in a development overseen by a homeowners association (HOA), be on your guard. One missed bill could land you in a heap of trouble. The Wall Street Journal reports HOA-instigated foreclosures are on the rise—and fast. Citing real estate data and analysis company ATTOM’s findings, there were 6,376 properties with foreclosure activity—from default notices to completed sales—tied to HOA actions in the first quarter of 2026. This marks a 40% rise from two years prior. “Aggressive Collections” “HOAs are being forced into more aggressive collections to avoid their own financial collapse,” Brian Fox, co-founder of real estate technology firm Benutech, which tracks HOA delinquency trends and foreclosures, told the Journal. The primary legal mechanism driving the rapid increase in enforcement is a “super-lien” status, which half the U.S. states have in their legal arsenal. It allows an HOA’s lien to take precedence over other recorded instruments, including the primary mortgage holder. Something as small as a delinquent HOA bill, when escalated, can end up as a public auction. 100% Increase in General Liability Insurance for HOAs For HOAs, the costs for condo and h...