Condo Q&A

Why does a property lien not take first position over a mortgage?

Written by stephen polinsky | Sun, Sep 16, 2012 @ 01:25 PM
I was surprised to learn that when an HOA files a lien against an owner's property for failure to pay their HOA fees, the lien does not take precedence over the 1st or 2nd mortgage. If you obtain a loan to purchase an automobile, take that automobile to a repair shop, and then refuse to pay the mechanic, he can file a lien against your car which is superior to that of the lender's lien. Similarly, if you hire a contractor to perform repairs on your home and then fail to pay him, he can also file a lien against your property which is superior to that of your mortgage lender. Why does this not hold true for HOAs? What can be done to change the law?