Our HOA won a court judgment against an owner. How do we actually collect it?

By OurHOA · General information · Revised October 28, 2026

How an HOA board collects a court judgment against an owner: recording the judgment lien, bank garnishment, interest, renewal deadlines, and TX, CO and FL limits.

Part of the HOA board handbook: treasurer and money.

The short answer

A judgment says the owner owes the association money. It does not put money in the bank, and the court will not chase the owner for you. The association has three ways to turn it into cash: record it so it becomes a lien on the owner's non-exempt real estate, ask the court to seize money the owner has now (usually a bank account), or wait until a sale or refinance forces a payoff of the recorded lien. Most small HOA judgments get paid the third way, sometimes years later, so the board's job is to record the judgment within weeks of it becoming final and keep it alive until it is paid. Rules differ by state and by the community's governing documents. This guide is general education, not legal advice, and garnishment or execution should go through the association's attorney.

How an association ends up holding a judgment

For ordinary dues, most associations rely on their assessment lien, which attaches to the lot without any lawsuit. A money judgment shows up when the lien can't do the job. Texas section 209.009 bars foreclosing an assessment lien when the debt is only fines and the attorney fees tied to those fines. Colorado section 38-33.3-316(1)(a) lets fines, fees, late charges and attorney fees sit on the lien but says they are not subject to foreclosure. So a board that wants a large fine balance or a damage charge paid often sues in small claims or county court. Texas justice courts hear civil claims up to $20,000 under Government Code section 27.031. Judgments also come from a former owner who sold with a balance the closing missed. An assessment lien follows the lot. A judgment follows the person, including property they buy later.

Record the judgment first

An unrecorded judgment is a piece of paper. Recording makes it a lien that a title company will find when the owner sells or borrows. Texas: ask the court clerk or justice of the peace for an abstract of judgment under Property Code section 52.002. Section 52.003 lists what it must show, including the balance due, the interest rate and the owner's address, so give the clerk a current address. Once recorded and indexed in a county's real property records, section 52.001 makes it a lien on the owner's non-exempt real property in that county, including property bought later. Colorado: record a transcript of the judgment, certified by the court clerk, with the county clerk and recorder. Section 13-52-102(1) says the lien starts from the time of recording, and not before. Florida: record a certified copy in the county official records. Section 55.10(1) requires the association's address in the judgment or in an affidavit recorded with it, or no lien attaches. For non-exempt personal property, Florida also lets a creditor file a judgment lien certificate with the Department of State under section 55.202. Record in every county where the owner owns land, not only the one the community sits in.

Homestead and other protected property

The recorded lien has limits. In Texas, section 52.001 excludes property exempt under Chapter 41, and section 41.001 protects a homestead from creditors' claims. A judgment against an owner who lives in the community usually does not attach to that home at all. Florida's constitution, Article X, section 4, says no judgment lien attaches to a homestead, apart from narrow exceptions such as taxes and purchase money. Colorado works differently: section 38-41-201 exempts homestead equity up to $250,000, or $350,000 when the occupying owner, spouse or dependent is 60 or older or disabled. That is why the lien pays off most often when the owner has rental property, a second lot, or moves out and stops claiming the home as a homestead. Texas section 42.001 also shields personal property up to $100,000 for a family and $50,000 for a single adult. None of this touches the association's separate assessment lien for dues on the lot itself, which our guide on the past-due dues timeline for boards covers.

Bank accounts and wages

Seizing money now takes a court writ, an attorney and filing fees, so run the math first. Texas: the constitution, Article XVI, section 28, bars garnishing current wages except for child support and spousal maintenance, so wages are off the table. A bank account can be garnished under Civil Practice and Remedies Code section 63.001(3) once the association has a valid judgment and files an affidavit that, to its knowledge, the owner lacks enough Texas property subject to execution to pay it. Colorado allows wage garnishment, capped by section 13-54-104(2)(a)(I) at the lesser of 20 percent of weekly disposable earnings or the amount above 40 times the federal or state minimum hourly wage. Florida section 222.11(2)(a) fully exempts a head of family who takes home $750 a week or less, and the federal cap for other debtors is the lesser of 25 percent of disposable earnings or the amount above 30 times the federal minimum wage. In Florida the court can order the owner to fill out a sworn fact information sheet listing employers, accounts and property. If the owner files bankruptcy, stop every collection step that day and call the attorney, because the automatic stay covers judgments too.

Interest and the treasurer's ledger

Judgments earn interest, and the payoff letter should include it. Texas Finance Code section 304.002 applies the contract rate, capped at 18 percent, when the judgment rests on a contract that sets interest. Otherwise section 304.003 uses the prime rate, with a 5 percent floor and a 15 percent ceiling, fixed for the month the judgment is signed. Colorado section 5-12-102(4) uses the written contract rate, or 8 percent a year compounded annually. Florida's Chief Financial Officer sets the judgment rate each quarter under section 55.03, and the judgment must show the rate on its face. Book the judgment as its own receivable, separate from the owner's assessment account. Don't add late fees to it, and don't let new dues roll into it. New assessments keep running on the normal collection track. Post interest at year end, apply each payment, and keep a one-page history: court, case number, date entered, amount, rate, where it was recorded and when the lien expires.

A sample timeline

Week 0: the judge signs the judgment. Ask the clerk when it becomes final and whether any appeal is pending. Weeks 3 to 6: get the abstract, transcript or certified copy and record it in each county where the owner holds land. Same month: mail the owner a payoff letter and an offer to set up payments. Day 60: if nothing comes in, the board decides in executive session whether the balance justifies a garnishment. Every January: the treasurer updates the balance with interest. Then the renewal dates, which are the ones boards miss. Texas: the lien runs 10 years from recording under section 52.006(a), and the judgment goes dormant if no writ of execution issues within 10 years of entry under Civil Practice and Remedies Code section 34.001. Ask the attorney about a writ in year 8 or 9. Colorado: the lien expires 6 years after entry unless the judgment is revived and the new transcript recorded before then, so start the revival in year 5. Florida: the lien lasts 10 years and can be extended once for 10 more by rerecording a certified copy with an address affidavit before it expires (section 55.10(2)). A personal property lien certificate lapses after 5 years, with one second certificate allowed in the window 6 months either side of lapse (section 55.204).

Wording you can use

Motion: 'I move that the board direct the treasurer to obtain [an abstract of judgment / a certified transcript / a certified copy] of the judgment entered [date] in [court], case number [number], against [owner] for $[amount], record it in the real property records of [county] County, and add the renewal deadline of [date] to the board calendar. The board authorizes up to $[amount] for clerk and recording fees.' Payoff letter paragraph: 'On [date], the [court] entered judgment for the association against you for $[amount]. The judgment has been recorded in [county] County and earns interest at [rate] percent a year. The payoff as of [date] is $[amount]. To pay in full or to propose a written payment schedule, contact the treasurer at [email] by [date, 30 days out].' When the owner pays in full, sign and record a release of the judgment lien within days. A title company can't close a sale while the lien shows on the record, and the owner will ask.

Mistakes boards make

Filing the judgment in a drawer. The lien starts at recording, and a creditor who records first usually stands ahead of you. Recording only in the home county when the owner has a rental two counties away. Missing a renewal date after a board turnover, which can wipe out years of patience; put it in the handoff binder and the shared calendar. Garnishing a Texas paycheck, which the constitution forbids. Rolling the judgment into the assessment ledger and charging late fees on it. Naming the owner and the balance in open session instead of using an account number and executive session. Spending $3,000 in attorney fees to chase a $1,200 judgment against a homestead the lien can't reach; sometimes the right call is to record, calendar the renewal and wait. If the balance looks unrecoverable, our guide on deciding when to write off uncollectible HOA dues covers the accounting. And forgetting the release once paid, which turns a win into a complaint.

Sources

These guides are general education for HOA boards and residents, not legal, tax, or financial advice. Rules vary by state and by your community's governing documents - check with a professional for your situation.

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