What is the worst-case scenario if a HOA places a lien on a house because the owner des not pay annual dues?
Can the house be sold with a lien? Can an Estate be settled if there is a lien againts thte property?

What is the worst-case scenario if a HOA places a lien on a house because the owner des not pay annual dues?
Can the house be sold with a lein? Can an Estate be settled if their is a lien againts thte property?

Worst case? The house is sold to satisfy the lien, an a deficiency judgment is entered against you. Not likely perhaps, and depending on your jurisdiction HOAs may not be able to do this, but that's what you asked.

Certainly a buyer could elect to purchase subject to the lien. Again, not likely. But as a practical matter it would simply reduce the purchase price to the amount of the lien.

If the lien is valid, the executor of the estate would probably have to pay it off before closing the estate.

I agree with AK. Buying a home in a HOA and then not paying your dues is like a wee wee match with a skunk, you are going to loose.

Thank you, both. I like the analogy ballenber1 :) But right now we have a "voluntary" neighborhood association (NA), not an official HOA. We are in Texas where HOAs have considerable power. Some are trying to move us toward HOA status with mandatory dues, and some are resisting. The president of the NA says we need to do this right now (the 40th anniversary of the NA) so they can get liability insurance for the officers. There are other issues about height and setbacks in contention. The foreclosure issue keeps coming up as a possibility. We've heard stories about little old ladies losing their house after 50 years for not paying $2k in dues. Another contention is that we can only change the deed restriction instrument on the anniversary dates(the deed restriciton say it started as a 40 year term, with auto renewal every 10 years unless modified by a majority. I'm trying to decide what is real before I commit to either position.

... But right now we have a "voluntary" neighborhood association (NA), not an official HOA. ...

Another contention is that we can only change the deed restriction instrument on the anniversary dates(the deed restriciton say it started as a 40 year term, with auto renewal every 10 years unless modified by a majority. I'm trying to decide what is real before I commit to either position.

So there is no active HOA, but the deeds provide for one? That obviously may make the matter quite different. And more complicated. An attorney should review the deed restrictions in light of the statutory law in effect back when the neighborhood was developed and the deed restrictions were written. Then review the changes, if any, to the statutes over the years. It remains to be seen whether they can force an "official HOA" upon homeowners who don't agree.