Lueder, Larkin & Hunter, LLC

This past year, community associations have seen an increasing benefit of implementing foreclosure proceedings against delinquent owners. This article describes the foreclosure process and addresses changes in community association law relating to this process.

In 2004, the Georgia legislature amended the Georgia Property Owners’ Association Act (the “POA”) and the Georgia Condominium Act (the “Condo Act”) to permit judicial foreclosures of an association’s lien, subject to superior mortgages or other liens. As a result, associations governed by the Condo Act and POA are no longer required to pay off an owner’s existing mortgage or any other superior liens prior to foreclosure. However, any mortgage or lien that remains in place against the property after the association forecloses will need to be paid off to avoid a subsequent foreclosure by the holder of that mortgage or lien. The POA and the Condo Act were further amended in 2008 to require the amount of the statutory lien to be at least $2,000.00 prior to the initiation of a foreclosure case. This minimum amount can be comprised of assessments, interest, late charges, reasonable attorney’s fees actually incurred that became due within the last four years, and/or fines which were properly imposed as a result of a violation which occurred within the last two years.

One of the most important ways for an owner to be involved in a community is to pay his or her assessments.  Community associations cannot fulfill their obligations related to maintenance, repair, and operations without owners paying their assessments.  Many associations have had enough of delinquent owners who continue not to pay and are increasingly [...]