Homeowners associations across the country are taking a tougher approach to unpaid dues as rising costs strain community budgets and leave many associations with fewer financial options.
According to The New York Post, new data shows HOA foreclosures climbed nearly 40% over the past two years, reaching 6,376 properties during the first quarter, according to real estate analytics firm Attom, as reported by The Wall Street Journal.
The increase has outpaced the growth in traditional mortgage foreclosures.
The trend comes as HOAs face soaring insurance premiums, shrinking reserve funds and added expenses tied to stronger building safety requirements adopted after the 2021 collapse of the Champlain Towers South condominium in Surfside, Florida.
Industry experts say many associations can no longer afford lengthy grace periods for delinquent homeowners.
"HOAs are being forced into more aggressive collections to avoid their own financial collapse," Brian Fox, co-founder of real estate technology firm Benutech, told the Journal.
Attorney Kirk Pearson, who represents homeowners in HOA disputes, said Foreclosure cases often begin with relatively small unpaid balances but quickly grow as legal fees and collection costs accumulate.
He explained that many associations turn delinquent accounts over to specialized collection firms, adding high costs to the original debt.
If a property is sold at auction, homeowners generally have a 90-day redemption period to repay the outstanding balance, fees and costs.
If no one purchases the home, the HOA may take ownership and decide whether to keep, sell, or transfer the property.
HOA dues are also climbing in many communities.
Residents of Magnolia Cove, an 80-home neighborhood outside Charlotte, North Carolina, have reportedly seen monthly HOA dues rise from $350 to $1,250. Homeowners there also face a $10,000 special assessment.
Benutech told the Journal that more than 285,000 HOA liens were filed in 2025, an increase of about 8.8% from the previous year.
Associations have pointed to rising insurance costs, labor expenses, landscaping bills and maintenance costs as major financial pressures.
One Long Island HOA reportedly saw its annual insurance premium jump from $60,000 to $360,000.
Some communities are already feeling the impact. At Fairview Condo 1 in Middle Island, New York, 15 of its 202 units are behind on monthly dues, creating an estimated $8,900 monthly shortfall.
Ten of those units are already in Foreclosure, while the board has delayed maintenance projects and imposed special assessments to cover expenses.
The Journal also reported that Floyd Mayweather Jr.'s Las Vegas home accumulated roughly $25,000 in unpaid HOA dues beginning in January 2025, along with interest and legal fees.
His attorney said the issue resulted from an accounting oversight that has since been resolved after changes to the boxer's financial management team.
The Community Associations Institute told the Journal that many HOAs still offer payment plans to homeowners experiencing financial hardship before pursuing Foreclosure.