Nassau County Homeowners Face a Hidden Foreclosure Crisis: HOA Fees Now Threaten Homes Even When Mortgages Are Current

A concerning trend is emerging across Nassau County in 2025 that threatens homeowners in ways traditional mortgage protections cannot address. Homeowners facing HOA foreclosure could potentially lose their homes, even if they are current on their mortgage payments, simply because they have fallen behind on HOA fees. This crisis represents a fundamental shift in how foreclosure proceedings can bypass the safety nets that homeowners typically rely on.

Understanding the HOA Foreclosure Threat

New York doesn’t have statutes specifically pertaining to HOA foreclosures. Instead, associations rely on their governing documents and general foreclosure laws. State law says that a COA lien may be foreclosed in the same manner as a mortgage of real property. So, the foreclosure will be judicial. This means HOA foreclosures in Nassau County follow the same court procedures as traditional mortgage foreclosures, but with one critical difference: they can proceed independently of your mortgage status.

The most alarming aspect of this crisis is how HOA foreclosures can completely sidestep mortgage protections. A common misconception is that the association can’t foreclose if you’re current with your mortgage payments. However, an association’s right to foreclose isn’t dependent on whether you’re up to date on your mortgage. This creates a dangerous blind spot for homeowners who believe staying current on their mortgage payments protects them from foreclosure.

How Association Fee Defaults Bypass Traditional Protections

Nassau County homeowners are discovering that HOA fees are typically not included in your monthly mortgage payment. Instead, they are paid directly to the homeowners association. This separation creates a vulnerability that many homeowners don’t recognize until it’s too late.

When homeowners fall behind on HOA dues, associations have powerful collection tools at their disposal. Most HOAs also have the power to get a lien on your property if you become delinquent in assessments. Not only will an assessments lien cloud the title to the property, which hinders your ability to sell or refinance the home, but the property can also be foreclosed to force a sale to a new owner—even if the property has a mortgage on it.

The speed at which these proceedings can advance is particularly concerning. Unlike mortgage foreclosures, which often involve lengthy negotiation periods and multiple opportunities for homeowners to catch up on payments, HOA foreclosures can move more quickly through the court system.

The Current State of Nassau County Foreclosures

There are currently 56 foreclosures for sale in Nassau County at a median listing price of $870K. While this represents various types of foreclosure proceedings, the inclusion of HOA-initiated foreclosures adds another layer of complexity to the county’s housing crisis.

Nassau residents facing foreclosure. Our Project has maintained a consistent presence in the Nassau County Supreme foreclosure settlement part for the better part of the last 13 years. This established presence indicates the ongoing nature of foreclosure challenges in the county, with HOA-related cases becoming an increasingly significant portion of the caseload.

Legal Protections and Emerging Legislation

There is some hope on the horizon for Nassau County homeowners. As of late summer 2025, a bill (AB 3470) that would implement new HOA laws in New York was pending in the legislature. This law would require HOAs and condominium boards to provide a 90-day notice before starting any foreclosure action to enforce a lien for unpaid common charges, assessments, fines, or fees. The bill is likely to pass.

However, until this legislation becomes law, homeowners remain vulnerable to rapid foreclosure proceedings with limited notice periods.

Warning Signs and Prevention Strategies

Nassau County homeowners should be vigilant about several warning signs that could indicate potential HOA foreclosure risk. Any communication from your HOA regarding delinquent fees should be taken seriously, as Delinquent homeowners can face late fees, interest charges, liens against their property, debt collection actions, and even foreclosure in some states.

The consequences of ignoring HOA obligations extend beyond just losing your home. Failure to pay HOA fees could create a lien on the property, violate the terms of your mortgage, or result in foreclosure. Therefore, it’s critical to pay your HOA fees on time.

Getting Professional Help

If you’re facing HOA foreclosure proceedings in Nassau County, time is critical. The sooner you get legal help, the more options you’ll have to stop the foreclosure process. A free consultation with a foreclosure attorney can help you understand the best strategy.

Working with an experienced Foreclosure Attorney Nassau County can provide crucial assistance in navigating these complex proceedings. The foreclosure attorneys at The Frank Law Firm P.C. have helped many clients in Nassau County, NY, and Nassau County avoid foreclosure, negotiate with lenders, and defend their homes against foreclosure. They have a deep understanding of the law and legal procedures involved in foreclosure cases and use this knowledge to provide the best representation for their clients.

Looking Ahead: Protecting Your Home

Nassau County’s HOA foreclosure crisis represents a significant shift in how homeowners must approach property protection. The traditional focus on maintaining mortgage payments is no longer sufficient. Homeowners must now equally prioritize their HOA obligations to avoid losing their homes through this alternative foreclosure pathway.

As pending legislation may provide additional protections, current homeowners cannot wait for these changes to take effect. Understanding your HOA’s governing documents, maintaining open communication with your association, and seeking legal help at the first sign of trouble remain the best defenses against this growing threat.

The crisis affecting Nassau County homeowners serves as a wake-up call about the evolving nature of foreclosure risks. By staying informed and taking proactive steps to address HOA obligations, homeowners can protect themselves from this hidden threat to their property ownership.