Maryland HOA Liens: What Happens to Your Property?

What Happens If Your HOA or Condo Association Places a Lien on Your Maryland Property?

If your HOA or condominium association places a lien on your Maryland property, it means the association is asserting a legal claim against the property for an unpaid obligation. That lien can complicate refinancing or selling your home, increase the amount you owe, and potentially lead to foreclosure if the issue isn't resolved.

The good news is that an association lien doesn't automatically mean you're losing your house. Understanding what you owe, whether the lien is valid, and what options you have is the first step.

Why Would an HOA or Condo Association Place a Lien?

In Maryland, homeowners associations and condominium associations can have lien rights for unpaid assessments and certain other charges, subject to state law and the association's governing documents.

Common situations include falling behind on monthly HOA or condo fees, unpaid special assessments, or disputes involving charges added to an owner's account.

What starts as a relatively manageable balance can become more complicated when interest, collection expenses, or legally permitted fees are added.

Maryland's Contract Lien Act establishes procedures for many association liens, including notice requirements and opportunities to dispute a proposed lien. Not every charge is automatically enforceable, and certain fines and fees are subject to additional restrictions.

If you've received a notice, don't assume every amount listed is correct. Request an itemized statement and review the deadlines carefully.

Can an HOA or Condo Association Foreclose on Your Home?

Potentially, yes. Maryland law allows foreclosure of certain enforceable association liens, but there are important limitations.

For example, Maryland generally prohibits foreclosure of a lien consisting only of fines or attorney's fees related to those fines. Additional protections and procedural requirements may apply depending on the type of association and the debt involved.

An HOA foreclosure is separate from your mortgage lender's foreclosure rights. Being current on your mortgage doesn't necessarily eliminate an association lien problem.

If you've received a foreclosure notice or legal paperwork, speak with a Maryland real estate attorney promptly. Deadlines matter, and ignoring the notice can reduce your options.

Can You Sell a Maryland House With an HOA or Condo Lien?

Yes, in many situations you can still sell the property.

The lien generally needs to be addressed before or as part of settlement so the buyer can receive the title required under the contract.

Depending on the circumstances, an outstanding balance may be paid from the seller's proceeds at closing. Your title company can obtain payoff information and determine what must be resolved.

If there isn't enough equity to cover the mortgage, association lien, and other selling expenses, the situation becomes more complicated. Negotiating a resolution or exploring a short sale may be necessary, depending on the debts and approvals involved.

This is why I recommend evaluating the property's market value and estimated net proceeds before deciding how to proceed.

Helpful Maryland Resources

The Maryland Contract Lien Act provides the legal framework for establishing certain liens against property.

The Maryland Homeowners Association Act is another useful starting point for understanding HOA-related rights and responsibilities.

For questions about whether a particular lien is enforceable, consult a Maryland attorney.

How I Help Maryland Homeowners Facing HOA or Condo Problems

I'm Dan McDevitt with Cummings & Company Realtors and RealVolution Homes Group. Since 2004, I've helped homeowners navigate complicated property sales involving financial difficulties, liens, short sales, estates, and other challenging circumstances.

When an HOA or condo lien is involved, my role is to evaluate the property's market value, explain potential selling options, coordinate with the title company, and help determine whether a traditional sale, as-is sale, or another strategy makes sense.

If you're dealing with unpaid assessments, an association lien, or concerns about selling your property, visit my Maryland HOA & Condo Association Problems page to learn more about your options.

About Dan McDevitt

Dan McDevitt is a Baltimore-area Realtor with Cummings & Company Realtors and President of RealVolution Homes Group, licensed in Maryland and Delaware. With more than 20 years of real estate experience, Dan specializes in helping homeowners and families navigate complicated real estate situations brought on by major life events.

His experience includes probate and estate property sales, selling inherited homes, selling a parent's home using a power of attorney (POA), divorce-related property sales, foreclosure and pre-foreclosure situations, short sales, reverse mortgage properties, bankruptcy-related sales, and as-is home sales.

Dan serves Baltimore City, Baltimore County, Harford County, Anne Arundel County, Howard County, and Cecil County, while assisting clients throughout Maryland and Delaware.

Educational information only. This article is not legal, tax, financial, lending, or mortgage servicing advice. FHA HECM rules differ from those for proprietary reverse mortgages, and eligibility, deadlines, and payoff requirements must be confirmed with the servicer and appropriate professionals.

Disclaimer: This article is for general educational purposes and does not constitute legal, financial, tax, lending, or mortgage servicing advice. Reverse mortgage requirements vary by loan type and individual circumstances. Consult your loan servicer, a HUD-approved housing counselor, and a qualified Maryland attorney for guidance about your specific situation.