Facing the threat of a foreclosure due to unpaid homeowners’ association (HOA) fees is overwhelming. As time passes and additional penalties are added to the original missed payments, you might think you have little recourse. Before you decide on your next steps, you might be wondering, “How does HOA foreclosure work in Arizona?”
Hire an HOA Lawyer
Life is always unpredictable, which can leave you scrambling when faced with the uncertainty of an HOA foreclosure. Being unable to keep your HOA dues current is a difficult situation. When you hire an HOA lawyer from Harper Hall PLC, you get an advocate who can fight for your interests against a difficult HOA.
Prevalence of HOA Foreclosure in Arizona
Almost 2.25 million residents in Arizona live in a community association. Living in an HOA community can have many benefits, but if you fall behind on your dues payments, you could face an HOA foreclosure as your HOA tries to recover those dues.
As of October 2025, the foreclosure rate in the United States was one out of every 3,871 housing units, an increase of 19.43% since October 2024.
In Arizona, for October 2025, one out of every 4,352 housing units faced foreclosure, a 13.34% increase from October 2024. Arizona has the nineteenth-highest foreclosure rate in the country. The counties with the worst foreclosure rates include:
- Pinal
- Yuma
- Cochise
HOA Foreclosure Process in Arizona
Most of the foreclosures in Arizona are from mortgage lenders stemming from unpaid mortgge payments, but HOAs also have statutory rights to pursue foreclosure to collect unpaid assessments in certain circumstances. Every HOA community is governed by its own set of governing documents. Different communities have different rules for how late dues and other fines are managed. Communication is always the greatest tool when you have challenges with paying dues.
Facing a possible HOA foreclosure alone can be daunting. A trusted HOA attorney can determine if you have other options before your home faces foreclosure. The foreclosure process can be complex, but several steps should be followed:
- Initiation. Once a substantial amount of late dues has accumulated, the HOA should attempt to collect payment. HOA residents are often barred from using the amenities of the community until payment is made. If an arrangement is not reached and the legal requirements are met, the HOA can file for foreclosure.
- Judgment. When the HOA files for foreclosure, a judicial process begins. Homeowners have the right to defend themselves. If the court feels that the debt is justified, the HOA is granted the foreclosure.
- Auction. The house is sold through a sheriff’s sale, where it is auctioned off to the highest bidder.
- Redemption period. Following the sheriff’s sale, homeowners have a period of six months to satisfy the HOA lien to prevent the sale of the property. If the homeowner does not pay the lien in full during the redemption period, they lose ownership of the house.
- Transfer of ownership. When the home is not redeemed during the redemption period, the sheriff’s office issues a sheriff’s deed to the auction winner. Ownership of the house is transferred.
- Moving forward. When the sale of the house goes through, the proceeds are used to pay the HOA’s lien. The original homeowner may be responsible for paying any remaining debt, and in most cases the foreclosure will remain subject to the first mortgage, meaning the new buyer takes title subject to that mortgage and with the risk that if it remains unpaid another foreclosure will follow.
Of course, even if a foreclosure does not occur, having a lien on your property makes it difficult to refinance or sell the property on your own. A skilled Arizona HOA attorney can negotiate with your HOA to resolve your debt before a lien is placed.
FAQs
How Long Does the Foreclosure Process Take in Arizona?
There is no set timeline for the foreclosure process in Arizona and for HOA foreclosures the HOA must file a lawsuit and obtain a judgment before pursuing foreclosure. That process usually takes at least several months. In the case of unpaid mortgage payments, different mortgage lenders have different policies on how many missed payments it takes before the foreclosure process begins, but foreclosure laws don’t let it happen until a minimum of 120 days of delinquency occurs.
Lenders are required to file a Notice of Trustee Sale, which typically gives borrowers 90 days before the house can go up for auction. The lender must send the borrower a notice of sale.
Can an HOA Foreclose on Your Home in Arizona?
Yes, an HOA can foreclose on a home in Arizona if certain conditions are met. The homeowner has to be behind on their HOA fee payments for a minimum of 18 months, or the total amount owed must be larger than $10,000, excluding collection, late, and attorney’s fees.
The HOA must provide the homeowner with 30 days’ notice and offer a reasonable payment plan for recovering the delinquent fees.
What Happens If the HOA Forecloses?
When you have unpaid dues, your HOA can put a lien on your home and force a foreclosure auction to recoup the unpaid dues. The HOA must provide notice to homeowners and offer to create a reasonable payment plan before a foreclosure can occur.
If a plan is not made, the foreclosure process can proceed. Your home is sold at auction, but you are still liable for any unpaid debts after the sale.
Can an HOA Foreclose on My House If I Am Current on My Mortgage?
Yes, the HOA foreclosure process is independent from the status of your mortgage. If your unpaid dues are high enough or have been past due for a significant amount of time, your HOA can put a lien on your house and force a foreclosure auction, regardless of the status of your mortgage.
How Can I Stop an HOA Foreclosure in Arizona?
If you are facing an HOA foreclosure in Arizona, you could use several methods to stop the process. You can pay the amount owed to your HOA in full, negotiate a reduced payoff amount, or set up a payment plan.
If the foreclosure process is the result of a disputed fee, you could file a claim against your HOA with the help of an experienced HOA attorney. You could also file for bankruptcy.
Contact Harper Hall PLC for All HOA Cases
Headquartered in Gilbert, Harper Hall PLC has fought for Arizona homeowners for over 25 years. We focus our practice on helping homeowners face challenges with HOAs or neighbors. Your home is likely your most important asset, and we can protect it. Contact Harper Hall PLC today to schedule your initial consultation.
