Can a Montana HOA Foreclose Over Unpaid Dues?

Few HOA threats are scarier than the word "foreclosure." In Montana, where the assessment lien comes from depends on whether your community is a condominium — and Montana's condominium statute is concise, so the documents matter a great deal. For your specific situation, a licensed Montana attorney is the right resource. This is general information, not legal advice.

The condominium assessment lien (§ 70-23-607)

For condominiums under MCA Title 70, Chapter 23, the association has a lien for unpaid common expenses, and the statute sets out the priority:

The lien is "prior to all other liens or encumbrances upon the unit except" tax and assessment liens and "a first mortgage or trust indenture of record." — Mont. Code Ann. § 70-23-607

Unlike the modern UCIOA states, Montana's condominium statute does not include a six-month "super-priority" carve-out over a first mortgage. The first mortgage of record stays ahead of the association's lien for unpaid assessments.

How foreclosure proceeds (§ 70-23-608)

Foreclosure of the condominium lien runs through the courts under the same general procedure as a mortgage foreclosure:

"The proceedings to foreclose liens created by 70-23-607 shall conform as nearly as possible to the proceedings to foreclose liens created by Title 71, chapter 3, part 5." — Mont. Code Ann. § 70-23-608

Section 70-23-608 also expressly preserves the association's option to sue for a money judgment: "An action to recover a money judgment for unpaid common expenses may be maintained without foreclosing or waiving the lien securing the claim."

For non-condominium HOAs

For a traditional Montana HOA where you own a house and lot, Title 70, Chapter 23 generally does not apply, and there is no general HOA lien statute. Any lien comes from the recorded declaration, and Montana real-estate foreclosure rules apply. The first step is reading the declaration — and consulting a licensed Montana attorney — to understand what lien right actually exists and how it would be enforced.

The balance is reviewable

Whatever the source of the lien, the amount, interest, and fees the association adds are governed by the statute (for condos) and the documents, and are reviewable. A balance built on improperly imposed fines or disputed charges is worth scrutinizing before it grows. A records request can reach the ledger showing how the balance was calculated.

Practical takeaways

• For condominiums, read § 70-23-607 and the declaration together to understand the lien; for HOAs, the declaration controls.
• Montana foreclosure of an association lien follows the same procedure as a mortgage foreclosure under Title 71, Ch. 3, Part 5 — so there is process and an opportunity to dispute the debt.
• See Which Montana Laws Govern Your HOA or Condo? for how the layers fit.

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

Sources

• MCA § 70-23-607 — Claim for common expenses; priority of lien
• MCA § 70-23-608 — Foreclosure of lien under claim for common expenses
• MCA Title 71, Chapter 3, Part 5 — Foreclosure of liens (general)