HOA Super Lien Mortgage 2026: How State Laws Affect Lender Priority and Closings

An HOA super lien is a provision in state law that elevates the homeowners association's lien for unpaid assessments above the first mortgage lien for a limited dollar amount. This means the HOA can foreclose its super lien and potentially extinguish the lender's first mortgage on properties with delinquent dues. Super lien laws vary significantly by state and are a title and underwriting concern, not just a background detail.

States With HOA Super Lien Statutes

States including Nevada, Colorado, Washington DC, Maryland, Delaware, Connecticut, and several others have enacted HOA super lien laws. The scope and priority amount differ by state. Nevada, for example, provides the HOA with a super lien for up to 9 months of unpaid assessments. Florida, by contrast, does not grant super lien status to HOAs. MLOs working in states with super lien laws must understand the local statute before closing condo transactions.

Impact on the Mortgage Transaction

Lenders in super lien states require confirmation that HOA assessments are current at closing. Most require a HOA payoff letter or status letter dated within 30 days of closing. Title insurance provides coverage for super lien risks in most cases, but the title company needs the HOA status to underwrite properly. Any delinquent HOA balance must be paid before or at closing in super lien states, or the lender's title insurance position is compromised.

What to Do on Every Condo File in Super Lien States

• ✦Order an HOA status letter or payoff letter early in the process, not just at closing
• ✦Review the letter for any delinquent assessments, pending special assessments, or litigation
• ✦Alert the title company to the super lien state status so appropriate endorsements are ordered
• ✦Confirm at closing that the HOA balance is zero or being paid from proceeds
• ✦Do not treat super lien exposure as a title company problem alone; it affects the lender's security position