Can a Maine HOA Foreclose Over Unpaid Dues?

Few HOA threats are scarier than the word "foreclosure." In Maine, a condominium association does have a lien for unpaid assessments — but the Maine Condominium Act channels how that lien is enforced, and it runs through the courts. For non-condominium HOAs, the picture comes from the declaration and general Maine law. For your specific situation, a licensed Maine attorney is the right resource. This is general information, not legal advice.

The condominium assessment lien (§1603-116)

For condominiums, the Condominium Act creates an automatic lien for unpaid assessments and fines:

"The association has a lien on a unit for any assessment levied against that unit or fines imposed against its unit owner from the time the assessment or fine becomes due." — 33 M.R.S. §1603-116

Enforcement is like a mortgage

The same section sets how that lien is enforced:

"The association's lien may be foreclosed in like manner as a mortgage on real estate." — 33 M.R.S. §1603-116

That's a meaningful protection. Foreclosing "in like manner as a mortgage" means a court process — with notice, an opportunity to dispute the debt and the accounting, and the procedural steps Maine requires of any mortgage foreclosure — not a quiet private sale. The amounts, interest, and fees the association adds are governed by the statute and the declaration, and are reviewable.

Where the lien sits in line — behind the first mortgage

Many owners assume an association lien automatically jumps ahead of the mortgage. In Maine, it does not. Section 1603-116 makes the assessment lien subordinate to a first mortgage, whenever that mortgage was recorded:

"A lien under this section is prior to all other liens and encumbrances on a unit except: ... (2) A first mortgage recorded before or after the date on which the assessment sought to be enforced becomes delinquent; and (3) Liens for real estate taxes and other governmental assessments or charges against the unit." — 33 M.R.S. §1603-116(b)

Unlike many states that give associations a six-month "super-priority" slice ahead of the first mortgage, Maine did not adopt one — a first mortgage outranks the assessment lien regardless of when it was recorded. Separately, §1603-116 provides that the lien is extinguished unless proceedings to enforce it are instituted within 6 years after the full amount of the assessments becomes due.

Non-condominium HOAs operate differently

If your community is not a condominium, §1603-116 does not apply. Any lien right turns on the declaration and general Maine law, with the Nonprofit Corporation Act (13-B M.R.S.) governing the entity. Whether the documents create a lien at all, and how it could be enforced, is exactly the kind of question an attorney sorts out. See Which Maine Laws Govern Your HOA or Condo?.

Practical takeaways

• For a condominium, a lien is not the same as losing the home — it generally has to be foreclosed in court, like a mortgage.
• A records request can reach the ledger showing how the balance was calculated.
• An improperly imposed fine folded into the balance is worth scrutinizing, since the lien can secure fines too.

For anything approaching actual enforcement, the timeline and defenses are something a licensed Maine attorney should review promptly.

Sources

• 33 M.R.S. §1603-116 — Lien for assessments
• 33 M.R.S. §1603-118 — Association records
• 13-B M.R.S. — Maine Nonprofit Corporation Act