A missed $400 payment led to an HOA foreclosure in NC that cost a woman her home. The property was later sold for nearly $900,000. This case has sparked debate about HOA powers and prompted calls for legal reform.
HOA Foreclosure in NC: One Missed Payment Leads to Major Loss
Taylor Sanders fell behind on a $400 homeowners association fee in Weddington Hills. She later lost her home over it. The HOA said it sent multiple letters, but Sanders said she never received them. She admitted she owed the $400.
In February 2021, the HOA placed a lien on her house. By April, they told her she owed $1,200 and would face foreclosure. Sanders thought the notice was fake. However, the foreclosure moved forward, and she lost her 3,300-square-foot home.
The property sold for just $49,000. Five months later, it was flipped for $850,000. Sanders received nothing from the resale. She now says she wants others to learn from her case. She hopes homeowners understand their rights under HOA rules.
Legal HOAs Rights and Proposed Reform
Under North Carolina law, an HOA can place a lien on a home for unpaid dues. It can then move to foreclose. The goal is usually to resolve the debt with the homeowner, not remove them from their property.
Still, if fines go unpaid, foreclosure is legal. Homeowners have limited options unless they formally appeal.
Lawmakers in North Carolina are reviewing a bill that could restrict HOA foreclosure powers. If passed, the bill would force HOAs to follow more specific steps before filing liens. It would also require clear debt notices and outline possible consequences of nonpayment.
However, the bill has been delayed since May and has not yet passed. In the meantime, cases like Sanders’ continue to raise concerns about HOA authority and fairness.
