>> A new solution to help servicers preserve first-lien status from super-liens recorded by homeowner associations (HOAs) for delinquent HOA fees was released in February by Black Knight Data and Analytics, Jacksonville, Florida. The solution is called HOA Lien Pro.
The company says there are 22 "super-lien states" where an HOA can jump to first-lien status ahead of the servicer when it forecloses on a property with delinquent HOA fees. If a servicer is relegated to junior-lien holder status, it can face significant losses when a foreclosed home is sold by the HOA.
The new product can help servicers and investors identify the potential risk of HOA super-liens on properties in their mortgage portfolios.
"Considering the explosive growth in community associations over the last 10 years, and the fact that 22 states now grant super-lien status to HOA assessment liens, this is a critical issue for...