Late Fees

• If you fail to pay your HOA dues, an HOA can assess a penalty equal to the greater of $20 or 10 percent of the balance of the delinquent fees. An HOA cannot assess other fees such as penalty fees or administrative fees unless provisions for such fees are listed in the HOA members agreement. The delinquent homeowner has 15 days to pay the outstanding balance. The HOA must inform the homeowner of this 15-day grace period by sending the homeowner a letter via First Class Mail.
  
  

Liens

• HOAs in North Carolina generally have the right to place a lien on the home of a member who fails to pay delinquent fees. However, the homeowners association agreement must include details of the association's right to enforce a real estate lien. An HOA may allow the delinquent homeowner to pay the debt in installments, but the HOA can also opt to foreclose if the homeowner fails to settle the debt. The foreclosure process commences when the HOA sends the homeowner a letter demanding full payment of the debt.
  
  

Non-Judicial Foreclosure

• A North Carolina HOA must conduct a non-judicial foreclosure, i.e., the HOA forecloses on the home without having to prove a case before a judge. The HOA can sell the home and use the proceeds to cover the past-due fees. Lien holders in North Carolina must give homeowners at least 20 days notice of an impending foreclosure sale. Attorney fees in a foreclosure case cannot exceed $1,200 in cases heard before the court, but no limitations apply to attorney's fees in non-judicial foreclosures. The attorney's fees are usually covered by the sale proceeds.
  
  

Other Considerations

• When you fall behind on your HOA assessments, federal laws prevent the HOA or debt collectors from calling you with regard to the debt after 9 p.m. local time. Debt collectors cannot threaten you with acts of violence or make false statements. North Carolina debt-collection laws provide similar protections, and prevent an HOA from discussing the matter with anyone other than you or your attorney. Additionally, North Carolina laws prevent debt collectors from using "unconscionable means." This includes contacting a homeowner directly having been given the homeowner's attorney's contact information or pursuing a debt after the statute of limitations has expired.