How Colorado’s HOA Foreclosure Crisis Unfolded and the Legal Reforms Protecting Homeowners
What if you lost your home, not because of missing mortgage payments, but because of unpaid HOA fees? And what if those fees grew to $23,000 without you even realizing it? What if your property, worth hundreds of thousands of dollars , was sold off at an auction without your consent?
This is happening to homeowners all over Colorado where some HOAs are taking over more than they ever thought was possible. Small fines, and legal fees , have accumulated to the point that homeowners are losing their homes. The growing anger of these practices forced lawmakers to step in, and involved to protect homeowners.
Exclusive updates on WhatsApp!
Let’s take a deeper dive into this situation and see how Colorado is stepping up to protect its citizens.
II. The Scope of the Crisis
Since 2018 there are hundreds of homeowners in the State of Colorado that are having homes foreclosed over unpaid HOA dues. What was owed started off to be a small debt, in some cases just a few thousand dollars, and turned into a family losing their home.
In some cases, homeowners lost property worth well over $400,000 because of failing to pay minor HOA violations or minor amounts after a fee. The matter could have been settled relatively fast, but the fines spiraled into extensive battles laden with attorney fees—ultimately leading to the foreclosure sale of homes owing an HOA…