HOA Liens and Foreclosure in New Jersey
Whether a homeowners or condo association can foreclose on its lien for unpaid dues in New Jersey, and the limits.
Short answer: Condominium associations have a lien on each unit for unpaid assessments under the Condominium Act. A recorded association lien is generally subordinate to property tax liens and earlier mortgages, but it has a limited priority over prior recorded mortgages (not over municipal liens or… N.J.S.A. 46:8B-21(a), (b), (e), (f) (as quoted and described in Appellate Division opinions A-3243-24 and A-4945-17)
| HOA liens and foreclosure | Condominium associations have a lien on each unit for unpaid assessments under the Condominium Act. A recorded association lien is generally subordinate to property tax liens and earlier mortgages, but it has a limited priority over prior recorded mortgages (not over municipal liens or federal tax liens) for up to six months of customary assessments before the lien was recorded; that priority expires on the first day of the 60th month after the lien is recorded. The Appellate Division has noted that an association may bring its own action to foreclose its lien or a collection action. A buyer who gets the unit through foreclosure of the first mortgage is not liable for assessments that came due before taking title. Opinion on the 60-month expiration and the association's own foreclosure action: https://www.njcourts.gov/system/files/court-opinions/2019/a4945-17.pdf |
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More New Jersey foreclosure & homeowner law
- How Foreclosure Works in New Jersey
- Redemption and Deficiency Judgments in New Jersey
- Getting Your Home Back After a Tax Sale in New Jersey
- All New Jersey foreclosure & homeowner law rules
FAQ
Can an HOA foreclose on your home in New Jersey?
Condominium associations have a lien on each unit for unpaid assessments under the Condominium Act. A recorded association lien is generally subordinate to property tax liens and earlier mortgages, but it has a limited priority over prior recorded mortgages (not over municipal liens or federal tax liens) for up to six months of customary assessments before the lien was recorded; that priority expires on the first day of the 60th month after the lien is recorded. The Appellate Division has noted that an association may bring its own action to foreclose its lien or a collection action. A buyer who gets the unit through foreclosure of the first mortgage is not liable for assessments that came due before taking title.
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.