Liens & ForeclosureNJ
Can a New Jersey HOA Foreclose Over Dues?
By The HOARebel Team · June 1, 2026 · 3 min read
New Jersey is one of the few states that gives both HOAs and condominiums a real super-priority lien for unpaid assessments — but the statute caps the priority cleanly and excludes the charges associations sometimes try to pile on. Understanding what fits inside the cap and what does not is what separates a manageable problem from a crisis. For your specific situation, a licensed New Jersey attorney is the right resource. This is general information, not legal advice.
Two parallel statutes, one structure
New Jersey's super-priority lien lives in two parallel provisions:
- Condominiums — N.J.S.A. 46:8B-21
- Homeowners associations — N.J.S.A. 45:22A-44.1
Both work the same way. The association has a lien on the unit for unpaid assessments, and that lien can take limited priority over a prior recorded mortgage when the conditions below are satisfied.
The six-month priority cap
The headline rule: the lien's super-priority is capped at "the aggregate customary assessment against the unit owner for the six-month period prior to the recording of the lien." Six months — no more.
What does not get priority is just as important:
- Late charges are excluded
- Penalties are excluded
- Interest is excluded
- Collection fees and costs are excluded
Only the bare customary assessments for the six months before recording ride in the priority slice. Everything else — including attorney's fees — sits behind the first mortgage.
Annual renewal up to 60 months
The statute provides that the six-month super-priority "shall be cumulatively renewed on an annual basis as necessary." There is a cap: an association lien does not get priority over a prior recorded mortgage if a prior recorded lien of the association has already obtained priority over the same mortgage for 60 months from the date of recording. That is the outside ceiling.
Timing and notice requirements
The priority applies only to a lien recorded before either the association receives the foreclosure summons and complaint, or the lender files a lis pendens giving notice of foreclosure. After that point, the priority window is closed for that foreclosure action.
The statute also imposes a notice duty: when recording a lien that may be granted priority, the association must notify any first mortgage holder in writing of the lien's filing. A lender who does not receive that notice has an argument.
Foreclosure of the lien
Once recorded, the association's lien may be foreclosed in much the same way as a mortgage. New Jersey foreclosure runs through the courts, with the protections built into the foreclosure rules — including notice and the chance to challenge the amount claimed. Because New Jersey foreclosure is judicial, the timeline is longer than in non-judicial states.
What people generally do
In a New Jersey assessment-debt situation, a few points commonly matter:
- A written payoff and the association's records show exactly what is owed.
- The priority calculation strips out late charges, penalties, interest, and collection costs — only the bare six-month customary assessment slice gets priority.
- Whether the association sent the required written notice to the first mortgage holder.
- The association's PREDFDA-required ADR procedure is available to resolve disputes before foreclosure escalates.
- A licensed New Jersey attorney is the resource early, while options remain open.