HOAs - love 'em or hate 'em. On the one hand, they make sure that your neighbor doesn't paint their house Pepto Bismol pink. On the other hand, they can ticket you for leaving your garbage cans out too long. In Colorado, they can also put a lien on your property and foreclose in certain situations.
Under the Colorado Common Interest Ownership Act (CCIOA), HOAs can place a lien on your property if your dues account becomes delinquent. They may also be able to stick you with the late fines and attorney fees they incur while trying to get you to bring your account current. The HOA has 6 years to initiate the enforcement of the lien after the full assessment amount becomes due. This would be an amount equal to or exceeding 6 months of dues.
The other important thing to note is that this lien is first in priority over other lienholders, such as first or second mortgages, which means they can foreclose and get paid first. The only liens that have priority in this circumstance would be real estate taxes or other governmental assessments, and any liens which were recorded and acted upon before the HOA took action.
I've had plenty of clients who would not look at homes located inside a covenant controlled community, but if you choose to buy in one make sure you review and understand the rules before you close. Also, make sure you keep your contact information with them current so you don't miss any important communications.
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