HOA Lien & Foreclosure Risk Report (2026)
See how a 41.7% surge in HOA liens impacts mortgage portfolios and how to mitigate risk.
HOA delinquencies are surging across the U.S., driven by declining household liquidity and rising association operating costs. Total HOA liens exploded by 41.7% between 2022 and 2025, while foreclosure filings jumped 46.1%. This shifting landscape exposes mortgage servicers to major financial and operational friction, including REO bottlenecks and regulatory compliance fees. Moving from reactive crisis management to proactive portfolio surveillance with Cotality's PIM platform enables automated risk tracking and protects your capital.
41.7%
Spike in total U.S. HOA liens over three years, jumping from 177,260 in 2022 to 250,951 in 2025.
46.1%
Surge in HOA foreclosure filings by 2025, with five states accounting for 85.2% of the total U.S. volume.
47.5%
Conversion rate of HOA liens to foreclosures in Minnesota, the highest enforcement rate in the country.
HOA Lien & Risk Highlights
National Lien Surge: Total U.S. HOA liens skyrocketed by 41.7% from 2022 to 2025, climbing to 250,951 filings.
Concentrated Foreclosure Risk: Just five states (FL, TX, NV, CA, and AZ) dominate the national landscape, accounting for 85.2% of all HOA foreclosures.
High-Conversion Enforcement: State risks vary wildly, led by Minnesota's aggressive out-of-court process that converts 47.5% of liens into foreclosures.
