A proposed law in Arizona would allow homeowners associations to foreclose on someone's house after just six months of delinquent payments.
Currently, an HOA could move to take a home if the owner is 12 months or $1,200 behind on paying their monthly assessment.
State Sen. John Kavanagh, R-Fountain Hills, is sponsoring a bill, SB 1080, to change the rule to 6 months delinquent, regardless of the amount owed. Only delinquent assessments can lead to foreclosure; delinquent HOA fines don't count.
"If you can't pay $18 a month after six months, maybe you deserve to be thrown out," Kavanagh said. "You are pushing your expenses on other people."
An estimated 1.9 million Arizona homes are governed by an HOA, and 9,400 HOAs exist statewide.
Kavanagh says the bill is a compromise. He says it will help small HOAs to force much-needed payments sooner. He says it could also slow the foreclosure process for the homeowners who have high monthly assessments, which could qualify for foreclosure action in 3 months under current law.
All HOA foreclosures in Arizona have to go through a court hearing process with a judge making the final decision on whether to force the home's sale. After the ruling, a homeowner can also "redeem" the purchase for up to six months.
The HOA foreclosure bill has yet to be scheduled for a hearing in the Arizona Senate.