Foreclosures jumped 14 percent in 2025 over the previous year and 26 percent year over year in the first quarter of 2026. Here, our experts reveal whether they see this uptick in their communities and the key advice theyx are giving boards to prepare for and wisely address what looks like an emerging challenge.
Rising nationwide foreclosures signal a major financial warning for condo and Homeowners Associations (HOAs) because unpaid resident dues and soaring operating costs threaten community association budgets.The Growing ThreatRising filings: Nationwide foreclosure filings jumped 21% in the first half of 2026 compared to the previous year, according to reports highlighted by ABC News.HOA actions: HOA-related foreclosures rose nearly 40% over a two-year period, as reported by The Wall Street Journal.Strained budgets: Nearly 74% of associations are underfunded by 30% or more, leaving them vulnerable to economic shocks.
Why This Warns Communities Shared burden: HOAs fund repairs and maintenance through pooled resident dues. If one neighbor stops paying, the remaining owners must pay more to cover the gap.Higher expenses: Insurance premiums surged for 91% of community associations recently, with many seeing costs double.Aggressive collections: Cash-strapped boards skip informal grace periods and hand unpaid accounts to lawyers much faster.
This post reflects our understanding of publicly reported news and legal changes as of its publish date above — laws, rules, and market conditions continue to change. This isn't legal, financial, or insurance advice; confirm anything specific to your situation with a licensed professional.
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