Indiana Statewide Rule

Indiana HOA Assessments & Liens: Foreclosure Allowed Under Ind. Code § 32-28-14

Some RestrictionsApplies statewide across Indiana (2026)

Unpaid assessments become a homeowners association lien under Ind. Code § 32-28-14 once a notice of lien is recorded with the county recorder. The association may foreclose by court complaint, but not before 90 days and not later than 5 years after recording. The Act sets no late-fee or interest rate.

Key Facts

Lien for unpaid dues: Yes - on the lot once notice is recorded (Ind. Code § 32-28-14)
Foreclosure: Yes - by court complaint, no earlier than 90 days after recording
Enforcement deadline: Within 5 years of recording, or the lien is void (§ 32-28-14-8)
Late fee / interest rate: Not set by statute - governed by the recorded declaration
Budget approval: Majority of members at a meeting (Ind. Code § 32-25.5-3-3)

Last verified: 2026-06-27

Full Breakdown

Under Ind. Code § 32-28-14, sums assessed by an HOA "but unpaid for the share of the common expenses" constitute a lien on the owner's real estate once a notice of lien (naming the association, owner, property, and amount, signed by an officer and acknowledged) is recorded with the county recorder; priority dates from recording (§ 32-28-14-5). The association enforces it "by filing a complaint in the circuit or superior court," which "may not be filed earlier than ninety (90) days" and "must be filed not later than five (5) years" after recording, or the lien is void (§ 32-28-14-8). A purchaser taking title through first-mortgage foreclosure is not liable for assessments that came due before acquisition (§ 32-28-14-7). The HOA Act (§ 32-25.5-3-3) requires the annual budget to be member-approved; late fees and interest are set by the declaration, not statute.

Violations & Penalties

An owner who fails to pay assessments faces a recorded lien for the unpaid share of common expenses plus interest and costs the declaration allows, and ultimately a court-ordered foreclosure sale under Ind. Code § 32-28-14. The complaint cannot be filed in the first 90 days.

Frequently Asked Questions

Can an Indiana HOA foreclose on my home for unpaid dues?

Yes. Ind. Code § 32-28-14 lets an association record a lien for unpaid assessments and enforce it by filing a foreclosure complaint in the circuit or superior court. The complaint cannot be filed earlier than 90 days after recording and must be filed within 5 years, after which the lien is void.

Does Indiana law cap HOA late fees or interest on overdue assessments?

No. Neither the HOA Act nor the lien statute sets a late-fee or interest rate. Those amounts come from the association's recorded declaration and governing documents, so check your CC&Rs for the exact charges.

If a bank forecloses, am I liable for the old HOA dues?

Under Ind. Code § 32-28-14-7, a first-mortgagee or other purchaser who takes title through foreclosure of the first mortgage is not liable for the share of assessments that became due before they acquired title; that share is collected from all owners instead.

Sources

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