Homeowners associations across the country are escalating collection activity against delinquent residents at a pace that outstrips the broader mortgage market, a trend with significant implications for the receivables industry.
Properties with HOA-related foreclosure filings reached 6,376 in the first quarter of 2026, up nearly 40% from two years earlier and rising faster than overall mortgage foreclosure rates, according to real estate analytics firm Attom, as reported by The Wall Street Journal. HOAs filed more than 285,000 liens in 2025, an increase of about 8.8% year over year, per data from real estate technology firm Benutech.
“HOAs are being forced into more aggressive collections to avoid their own financial collapse,” Benutech co-founder Brian Fox told the Journal.
The financial pressure is real. The Foundation for Community Association Research found that master insurance premiums rose for 91% of community associations between 2024 and early 2025, with 17% seeing increases above 100%. Stricter reserve requirements enacted after the 2021 Surfside condo collapse have compounded the strain, forcing special assessments and dues hikes. The Journal cited one Long Island association whose annual premium jumped from $60,000 to $360,000.
The result: associations are skipping informal grace periods and referring delinquent accounts to attorneys sooner. In roughly 20 states, HOA liens carry “super priority” status that can outrank even the primary mortgage, according to Pennsylvania foreclosure attorney Stephen Hladik.
For collection professionals, the growth comes with a warning label. Consumer advocates and plaintiff-side attorneys are already scrutinizing fee practices. California attorney Kirk Pearson told the New York Post that collection costs, not the missed dues themselves, often make up the bulk of homeowners’ balances, and that some collection firms are owned by the same attorneys advising the associations, creating an incentive to pursue foreclosure over resolution.
A Baltimore Sun investigation illustrates the reputational risk. One condo owner whose dispute began with a roughly $1,000 escrowed payment over an unrepaired ceiling leak saw his balance grow to $81,859, including $62,000 in attorney’s fees, before his unit sold at auction for $10,000. Advocacy groups in Maryland are now pushing for state oversight of HOA collection practices.
