WY: HOA seeks to foreclose on $7.5M land for $100K

By Deborah Goonan, Independent American Communities


How much power do Homeowners’ Associations (HOAs) claim to wield over its member’s property rights?

Well, in Wyoming, landowner Jackson Hole Land and Cattle allegedly owes $100,000 in association dues payable over the past year. The Springcreek HOA has filed a lien on these properties, and is seeking in court to foreclose on land worth over $7 million!

The power of the HOA lien and foreclosure affects not just individual homeowners, but also big-time land owners and corporate property owners.

There’s no law in any state that sets a minimum floor for HOA foreclosure. That means an Association can move to foreclose over as little as 1 or 2 percent of the value of a member’s property.


Suit could bring foreclosure on $7 million of land


Note that, depending on the state and the nature of the deed, your HOA can proceed with a non-judicial HOA foreclosure, meaning that there is no court review prior to the foreclosure auction. Check out this legal summary.


Wyoming is one state that predominantly secures a mortgage or Association-Governed Community assessment obligation a deed of trust that includes a “power of sale” clause. The language in the deed allows the trustee to sell your property without a prior court hearing. For further explanation, see this link:


In this particular case, it appears Jackson Hole Land and Cattle’s deed does not allow for non-judicial foreclosure, an exception in the state of Wyoming.



One Reply to “WY: HOA seeks to foreclose on $7.5M land for $100K”

  1. HOAs and investors should be taxed the “cancelled debt” for these super-priority lien “forgiven” mortgages. Taxation could serve as a disincentive to foreclosure, while benefitting homeowners FHFA, Fannie Mae, Freddie Mac, mortgage lenders. Taxation would also relieve the tax load from U.S. Taxpayers caused by this multibillion-dollar HOA super-priority lien foreclosure crisis. Tax HOAs to save homes, while saving taxpayers billions of dollars! Not legal or tax advice.

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