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Behind on HOA or Condo Dues: What to Do and Who to Call

Unpaid HOA dues can become a lien on your home and complicate any mortgage option or sale. Here are the practical steps, how HOA balances are paid at closing, and when to get an attorney.

Reviewed October 31, 2026 by George Lensch, broker, Wyze Realty. General information about Alabama, not legal, tax or financial advice.

Falling behind on homeowners association or condominium dues can feel smaller than falling behind on a mortgage, but it deserves the same attention. Unpaid assessments can grow quickly once late fees, interest and collection costs are added, and an association may have the right to place a lien on your home. If you are also behind on the mortgage, HOA arrears can complicate every option, from a modification to a sale.

The rules that apply to your association depend on its recorded documents and on which Alabama statutes cover it, and those questions are legal ones. This guide covers the practical side: what to ask for, how to respond, how HOA balances are handled when a home is sold, and when to call an attorney.

How an HOA Balance Becomes a Lien

For associations covered by Alabama's homeowners association statute, Ala. Code 35-20-12, the assessment lien arises when the assessment is due, and the association must give notice and record a statement with the probate judge within 12 months of the due date. Associations that are not covered by that statute may have lien rights under their recorded declaration of covenants instead. Condominiums can be governed by different rules than subdivision HOAs. Your attorney can tell you which framework applies to yours.

A recorded lien shows up in the title search when you sell or refinance, and it has to be paid or released before a title company will insure the sale. That is why HOA balances are almost always resolved at closing.

What to Do This Week

Work through this checklist. It saves on your device so you can come back to it.

Step by Step

1. Open every letter from the association or its attorney. Note any deadline, any mention of a lien, and any mention of a lawsuit. Court papers have their own deadlines; take them to an attorney immediately.
2. Get the documents. Find your declaration of covenants, bylaws and any rules or collection policy. Your closing package may include them, and the declaration is recorded in the county probate records. The association or its management company can usually provide copies.
3. Ask for a full ledger in writing. Request an itemized statement showing each assessment, payment, late fee, interest charge, fine and collection or attorney fee, with dates. Errors happen, especially after a management company change.
4. Dispute errors in writing. If something is wrong, say so in a letter or email, attach proof of payment, and keep a copy. Keep paying the amounts you agree you owe while the dispute is open.
5. Ask about a payment plan. Many associations would rather be paid over time than spend money on collections. Ask what plan they will accept and get the terms in writing before you make the first payment.
6. Talk to an attorney before signing anything that admits a debt amount, waives defenses, or consents to a judgment.

Behind on HOA dues and wondering what a sale would leave you? Call (256) 808-6861 or schedule a confidential call. There is no cost and no obligation.

Why Balances Grow, and Why Early Action Helps

An HOA balance is rarely just the missed dues. Depending on what your declaration and Alabama law allow, it can include late fees, interest, fines, and the association's collection or attorney fees. Once a balance goes to an attorney, those costs can climb faster than the dues themselves. Talking to the association early, before the account is referred out, usually leaves more room for a reasonable payment plan.

Talking With the Board or Manager

• Put requests in writing. Email or letter, with the date, your address and account number. Keep copies.
• Be specific about what you can pay. A realistic monthly amount you can actually keep up is more useful than a larger promise you may miss.
• Ask what happens to late fees and interest under a plan. Some associations will pause or reduce them for a borrower who keeps to a written plan; ask rather than assume.
• Stay courteous. Board members are often neighbors and volunteers. A calm written request gets further than an argument at a meeting.
• Do not ignore an attorney's letter. Once a law firm is involved, answer in writing and involve your own attorney.

If You Are Also Behind on Your Mortgage

HOA arrears and mortgage arrears often happen together, because the same hardship causes both. A few things to keep in mind:

• Include HOA dues in your loss mitigation application. Your servicer will ask for your monthly expenses. HOA assessments are a real housing cost; list them, and include the association's statement.
• Ask your servicer how HOA arrears affect your options. If the HOA lien is not paid, it can complicate a modification, a deed in lieu or a sale.
• Watch for notices from both. A mortgage servicer and an association are separate creditors with separate processes and deadlines. One being on hold does not pause the other.
• Talk to a HUD-approved housing counselor about a budget that covers both. Find one at consumerfinance.gov/find-a-housing-counselor.

See your options when you are behind on a mortgage and the Alabama foreclosure timeline.

Selling a Home With HOA Arrears

If selling is the right answer, unpaid dues usually do not stop a sale. They are paid from the sale proceeds at closing, like the mortgage. The key is getting the number early.

• Request a payoff or estoppel letter as soon as you decide to list. It states what the association says is owed through a date, including any transfer or processing charges it applies. Some associations take time to respond.
• Check it against your ledger. Raise disputes before closing, not at the closing table.
• Run a net sheet. Include the HOA payoff with your mortgage payoff, any other liens, back taxes and selling costs so you know what you would walk away with.
• In a short sale, HOA arrears must be negotiated or covered, because the mortgage lender is already taking less than it is owed. Ask early whether the association will accept a reduced payoff. See short sales.

If the home needs work or time is short, selling as-is may make sense. Listing as-is on the open market and taking a cash offer are both options worth comparing on a net basis.

Questions to Ask Your Attorney

• Which Alabama statute, if any, covers my association, and what does my declaration say about liens and collection?
• Has a lien been recorded, and was it recorded on time?
• Are the late fees, interest, fines and attorney fees on my ledger allowed?
• How does the association's lien rank against my mortgage?
• Can the association foreclose its lien, and what would that process look like?
• If I sell, can the payoff be negotiated, and how will disputed charges be handled at closing?

Our liens and judgments guide explains how HOA and other liens are handled at closing.

Common Questions

Talk It Through, Confidentially

Big decisions are easier with someone in your corner. Whether you are ready to sell, still deciding, or just need to understand your options, call or schedule a time to talk. The first conversation is free, private and comes with no obligation. If what you really need is an attorney, a CPA or a housing counselor, we will tell you that and point you in the right direction.

Schedule a Confidential Call Call or Text (256) 808-6861

Sources

• CFPB, find a HUD-approved housing counselor
• 12 CFR 1024.41, Regulation X loss mitigation procedures (CFPB, current regulation)

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Wyze Realty LLC, Huntsville, Alabama. Information on this page is general and educational, is not legal, tax, financial or credit advice, and may not reflect the most current law. Consult an Alabama attorney, CPA or HUD-approved housing counselor about your situation. All real estate services are provided in accordance with the Fair Housing Act.