HOA Liens and Foreclosure in Minnesota
Whether a homeowners or condo association can foreclose on its lien for unpaid dues in Minnesota, and the limits.
Short answer: Yes. In a common interest community (condominium, planned community or real-estate cooperative), the association has a lien for assessments, which may also include fees, late charges, fines and interest unless the declaration says otherwise. Minn. Stat. § 515B.3-116
| HOA liens and foreclosure | Yes. In a common interest community (condominium, planned community or real-estate cooperative), the association has a lien for assessments, which may also include fees, late charges, fines and interest unless the declaration says otherwise. It may foreclose the lien like a mortgage, by advertisement (power of sale) or by court action. Attorney fees and costs cannot be included in the amount the owner must pay to reinstate. The owner's redemption period is 6 months from the sale or a shorter period allowed by law. The lien ranks behind a first mortgage, but if the first mortgage is foreclosed, the buyer takes the unit subject to up to 6 months of unpaid regular assessments. Lien enforcement must begin within 3 years after the last installment of the assessment comes due. Different rules apply to cooperatives where unit interests are personal property (90-day notice procedure). Source: Minn. Stat. § 515B.3-116 |
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More Minnesota foreclosure & homeowner law
- How Foreclosure Works in Minnesota
- Redemption and Deficiency Judgments in Minnesota
- Getting Your Home Back After a Tax Sale in Minnesota
- All Minnesota foreclosure & homeowner law rules
FAQ
Can an HOA foreclose on your home in Minnesota?
Yes. In a common interest community (condominium, planned community or real-estate cooperative), the association has a lien for assessments, which may also include fees, late charges, fines and interest unless the declaration says otherwise. It may foreclose the lien like a mortgage, by advertisement (power of sale) or by court action. Attorney fees and costs cannot be included in the amount the owner must pay to reinstate. The owner's redemption period is 6 months from the sale or a shorter period allowed by law. The lien ranks behind a first mortgage, but if the first mortgage is foreclosed, the buyer takes the unit subject to up to 6 months of unpaid regular assessments. Lien enforcement must begin within 3 years after the last installment of the assessment comes due.
General legal information, not legal advice. Laws change and local rules can differ; check the linked official source or talk to a lawyer about your situation.