Court Upholds HOA’s Foreclosure Sale of Owners Property for “Shockingly Low Price”

This case involved a dispute between a homeowner (“Owner”) and his homeowners association (“Association”) over the validity of a HOA foreclosure sale. Owner was delinquent in the payment of assessments and other charges that totaled approximately $7,500.00. Association filed a lawsuit to foreclose its assessment lien pursuant to Arizona law. Being unable to personally serve Owner, Association obtained an order from the court allowing service of the complaint by posting and mailing.  After Owner did not respond, the court entered a default judgment allowing Association to foreclose.

The default judgment obtained by the Association authorized the sheriff to sell Owner’s property that was subject to the HOA lien. The property, which was said to be worth more than $100,000 sold at the sheriff’s sale for: