Texas HOA Foreclosure Limits & the 180-Day Redemption Right

Rule 1: No foreclosure on fine-only debt (Sec. 209.009):

Under Sec. 209.009, an association may not foreclose its assessment lien if the debt securing the lien consists solely of:

• fines assessed by the association
• attorney's fees incurred by the association that are solely associated with those fines
• amounts added to the owner's account as assessments under Sec. 209.005(i) (records-production costs) or Sec. 209.0057(b-4) (election recount costs)

The key word is "solely." If an owner owes regular or special assessments, the lien can still be enforced. But a board can't take a home over a $500 landscaping fine and the legal fees spent chasing it.

This pairs with the payment-priority rule in Sec. 209.0063, which generally applies an owner's payments to delinquent assessments first and to fines and fine-related fees near the end of the line. Practically, an owner who keeps paying assessments while disputing a fine should end up with a fine-only balance, and that balance can't support foreclosure.

Rule 2: A court has to sign off (Sec. 209.0092):

Texas HOAs generally can't run a quick nonjudicial (trustee's) sale on an assessment lien. Sec. 209.0092 requires the association to first get a court order through an expedited foreclosure application, under rules the Texas Supreme Court adopted to mirror its home-equity foreclosure procedure (Tex. R. Civ. P. 735–736). Alternatively, the association can file a regular lawsuit for judicial foreclosure.

There's one narrow exception: the owner can agree in writing to waive expedited foreclosure, but only at the time the association seeks foreclosure. An association can't bake that waiver into a resale certificate or make it a condition of transferring title.

Rule 3: Mortgage lenders get a chance to cure (Sec. 209.0091):

Before filing for expedited foreclosure or judicial foreclosure, Sec. 209.0091 requires the association to:

1. send written notice of the total delinquent amount by certified mail to each junior lienholder secured by a deed of trust, at the address in the deed records; and

2. give that lienholder until the 61st day after mailing to cure the delinquency.

Mortgage servicers often pay the HOA balance to protect their collateral, so this step frequently ends the matter without a sale.

Rule 4: Notice after the sale (Sec. 209.010):

If a sale does happen, Sec. 209.010 requires the association to send the owner and lienholders written notice of the sale, by certified mail, within 30 days. That notice must state the date of the sale and explain the owner's right of redemption. The date it's mailed is what starts the redemption clock.

Rule 5: The 180-day redemption right (Sec. 209.011):

Sec. 209.011 gives the lot owner, and any lienholder of record, the right to redeem the property within 180 days after the association mails the Sec. 209.010 notice. A lienholder can't redeem until 90 days after that mailing, and only if the owner hasn't already.

During the redemption period:

• the purchaser (the association or a third-party buyer) can't transfer the property to anyone except the redeeming owner
• any lease the purchaser signs is subject to the owner's right to move back in immediately after redeeming
• if the property is occupied, the purchaser has to file an eviction suit under Chapter 24 to take possession

What it costs to redeem:

If the association bought the property, the owner pays the association:

• everything owed at the time of the sale
• interest from the sale date, at the rate in the dedicatory instruments for delinquent assessments, or 10% per year if none is stated
• foreclosure and conveyance costs, including reasonable attorney's fees
• assessments levied after the sale
• reasonable costs the association incurred, including mortgage payments, repairs, maintenance, and leasing
• the purchase price, less any part already applied to the debt

If a third party bought it, the owner pays the association the remaining debt, interest, costs, fees, and unpaid post-sale assessments, and pays the buyer the purchase price, post-sale assessments and property taxes the buyer paid, the deed recording fee, and court costs. Rent the purchaser collected is credited against the total, and any excess goes to the owner.

Deadlines and paperwork that matter:

• Extension: If the owner or lienholder sends a written redemption request by certified mail on or before the last day, the right extends to the 10th day after the purchaser gives written notice of the amount due.
• Recording: The redeeming party should record the purchaser's deed or a redemption affidavit before the period ends. Otherwise, the redemption right won't hold up against a bona fide purchaser or lender for value.
• Association affidavit: For a third-party sale, the association must give the buyer an affidavit confirming payment within 10 days after receiving full payment.
• Partial payments: If the owner pays only part of the amount before the period runs out, the association must refund it within 30 days after the period expires.
• No redemption: Once the period and any extension end, the association or buyer must record an affidavit stating no redemption occurred.

Board checklist before enforcing an assessment lien:

• Separate fines from assessments in your ledger, and apply payments in the Sec. 209.0063 order.
• Confirm the balance isn't fine-only before referring an account for foreclosure.
• Send the required collection notices (Sec. 209.0064 requires certified-mail notice and at least 45 days to cure before an owner can be charged third-party collection costs) and offer a payment plan where Sec. 209.0062 requires one.
• Require a board vote to authorize foreclosure on a specific account, and record it in the minutes.
• Send the 61-day lienholder notice by certified mail before filing.
• File for expedited or judicial foreclosure. Don't rely on a nonjudicial sale unless the owner signs a waiver at the time foreclosure is sought.
• Calendar the 30-day post-sale notice and the 180-day redemption window.
• Track every cost the association incurs after the sale so it can be recovered if the owner redeems.
• Record the non-redemption affidavit once the period closes.

FAQ

• Can a Texas HOA foreclose on my house for unpaid fines?

No. Under Sec. 209.009, an association can't foreclose if the debt consists only of fines and attorney's fees associated solely with those fines. Unpaid assessments are a different story.

• How long do I have to redeem my home after a Texas HOA foreclosure?

180 days after the association mails you written notice of the sale under Sec. 209.010. A certified-mail request on or before the last day can extend that briefly.

• Does a Texas HOA need a court order to foreclose?

Generally yes. Sec. 209.0092 requires an expedited foreclosure order or a court judgment, unless the owner waives expedited foreclosure in writing at the time foreclosure is sought.

• Can my mortgage lender stop an HOA foreclosure?

Often. The association must notify lien holders and give them until the 61st day after mailing to cure the delinquency before filing. Lienholders can also redeem after a sale.

• Can the HOA sell or rent the property during the redemption period?

It can't transfer it to anyone except a redeeming owner. It can lease it, but the lease is subject to the owner's right to redeem and move back in.

• Keep the clock in view

Most HOA foreclosure mistakes in Texas are missed steps: a fine-only balance, a skipped lienholder notice, a late post-sale letter. My Front Yard helps boards keep governing documents, notices, and compliance records organized and track deadlines like the 61-day cure window and the 180-day redemption period, so a volunteer board doesn't lose track of a date that matters. [See how it works →]

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*Sources: Tex. Prop. Code Sec. 209.009, 209.0091, 209.0092, 209.010, 209.011 (via Texas Legislature Online, Texas.Public.Law, and FindLaw); Tex. H.B. 1228, 82nd Leg., R.S. (2011), bill text and analysis; Nolo, "The Right of Redemption Following an HOA Foreclosure." Verify current text at statutes.capitol.texas.gov before publishing.*

*Informational only, not legal advice. Talk to your association's attorney before starting any lien enforcement or foreclosure action.*