Can HOA Foreclose after Delinquent Assessments are Paid?

This case involved a dispute between a homeowners’ association (“Association”) and a homeowner member of Association (“Owner”) over Association’s right to foreclose on its lien on Owner’s property which resulted from unpaid assessments.

Association first sued Owner to foreclose on its lien for unpaid assessments and other amounts. Association alleged that the sum of $8,246.48 was owed for amounts that had been awarded in an earlier justice court judgment, plus subsequently incurred additional amounts that were not included in the judgment and attorney fees and costs. After Owner failed to timely respond to the action, Association sought the entry of a default and a default judgment against Owner. After the default had been entered, Owner sought to set aside the default and he tendered payment in the amount of $5,000.00 to Association to cover “all past due assessments” (not including the attorney’s fees and additional charges beyond the actual unpaid assessments).

Owner contended that by paying all of the past due assessments, Association could not foreclose for the unpaid attorney fees and other charges. The trial court declined to set aside the default and ruled in favor of Association. The court not only entered a judgment of foreclosure, but also awarded Association: