HOA foreclosures are increasing across the country as the broader foreclosure market climbs. ATTOM's 2026 mid-year data shows total foreclosure filings up 21 percent in the first half of 2026 compared with a year earlier and up 28 percent compared with two years ago — and HOA-initiated foreclosures are part of that trend. Multiple states are now pursuing legislative reform to restrict HOA foreclosure authority. In Texas, where HOA law provides specific homeowner protections, understanding what an HOA can and cannot do is the first step in responding to a lien or default notice.
See the Texas Foreclosure Hub for all options if you are facing foreclosure — including cash sales that close before the auction date.
Why HOA Foreclosures Are Getting National Attention in 2026
NewsNation reported in August 2026 that backlash is growing against HOA foreclosure activity across the country, with cases documented in Georgia, Ohio, Maryland, and North Carolina involving unpaid fines, accrued legal fees, and escalating enforcement actions. Homeowners in multiple states have faced foreclosure proceedings over amounts that started as small fines and grew through fees and attorney costs.
The increase in HOA foreclosure disputes is running parallel to the broader foreclosure surge. As financial pressure on homeowners increases — from high mortgage rates, elevated property taxes, and flat home price appreciation — more households are falling behind on all housing-related obligations, including HOA dues. Homeowners who are behind on mortgage payments are often also behind on HOA assessments.
Multiple state legislatures are pursuing reforms to limit HOA foreclosure authority and strengthen procedural requirements for challenging HOA enforcement. Texas is ahead of most states on homeowner protections, but the protections only apply when homeowners know what they are.
Can a Texas HOA Foreclose on Your Home? What the Law Says
Yes — a Texas HOA can foreclose on your home for unpaid assessments, but only under specific conditions and only after a detailed legal process that gives homeowners multiple opportunities to resolve the debt.
The key distinctions under Texas law:
Fines alone cannot trigger foreclosure. Texas law flatly prohibits an HOA from foreclosing when the debt consists solely of fines. The HOA must be pursuing unpaid assessments — monthly or annual dues, special assessments, or other mandatory charges — not just enforcement penalties. If your HOA claims it is foreclosing over fines, that claim may be invalid.
Two required notices before a lien can be filed. Before an HOA can file an assessment lien, it must send two separate notices: the first by first-class mail or email, and the second by certified mail at least 30 days after the first. An assessment lien can only be filed 90 days after the second notice — or later.
A 180-day right of redemption after the foreclosure sale. Even after an HOA forecloses and a third party purchases the property at auction, a Texas homeowner has 180 days to redeem the property by paying the outstanding assessments, costs, and fees. This redemption right does not apply if the HOA itself purchased the property.
Challenge procedures exist. Under Texas Property Code, if an HOA board skipped required steps — failed to provide proper notice, imposed fines without a hearing, or assessed fees outside its published schedule — the underlying fine or lien may be invalid. A real estate attorney can evaluate whether the HOA's process was procedurally correct.
"If the board skipped any of these steps, the fine may be invalid." — Cavell Law, on Texas HOA enforcement requirements
What Texas Homeowners Should Do If an HOA Has Filed a Lien
Request a full accounting. Texas law requires HOAs to provide an itemized statement of all amounts claimed. Review whether the total includes fines (which cannot form the basis of foreclosure) versus assessments (which can).
Verify the notice sequence. Confirm whether the HOA sent two notices in the correct sequence with the required timing. If the procedural requirements were not followed, the lien may not be valid.
Understand the 90-day window after the lien is filed. Once a lien is filed, the HOA can initiate foreclosure proceedings. The sooner a homeowner responds — by paying, negotiating, or challenging the lien — the more options remain available.
Consider whether selling before the foreclosure resolves the situation. If a homeowner is facing both an HOA lien and mortgage delinquency — a common combination — a cash sale that closes before the foreclosure auction can pay off both obligations from proceeds and avoid the seven-year credit damage of a completed foreclosure. The HOA lien is cleared at closing from the sale proceeds.
What This Means for DFW Homeowners With HOA Debt
The Dallas-Fort Worth region has a high concentration of HOA communities — master-planned subdivisions, townhome developments, and communities built after 2000 almost universally have HOA governance structures. Homeowners in these communities who fall behind on dues are subject to the same lien and foreclosure process as homeowners in other states, but with Texas's specific procedural protections.
For DFW homeowners who are behind on both mortgage payments and HOA dues, the combination creates compounding risk: the mortgage lender and the HOA are separately empowered to initiate foreclosure, and in Texas, either process can move to a courthouse-step auction in under 90 days once the required notices have been given.
The Bottom Line
HOA foreclosures are rising in 2026 alongside the broader national foreclosure surge. In Texas, the law provides specific protections: fines alone cannot trigger foreclosure, two notices are required before a lien is filed, and homeowners have a 180-day redemption right after a sale. If an HOA has filed a lien on your DFW property, verify the procedural steps were followed and understand that a voluntary sale — even a cash sale below retail value — clears the lien at closing and preserves credit in a way a completed HOA foreclosure does not.
Related: Texas Leads Nation in Completed Foreclosures as DFW Climbs → · Can I Sell My House During Bankruptcy? → · What Is a Deed in Lieu of Foreclosure in Texas? → · Texas Foreclosure Hub →
Sources: NewsNation, "Can an HOA Take Your Home? Why More Owners Are Facing Foreclosure Fights," August 4, 2026; LegalClarity, "Can a Homeowners Association Take Your Home in Texas?"; Texas State Law Library, "HOA Foreclosures," guides.sll.texas.gov; ATTOM, 2026 Mid-Year Foreclosure Market Report, July 2026.