Dues and don’ts: More owners are falling behind on their housing bills

Foreclosure notices and HOA liens surge higher

Two reports, one result – some homeowners are hurting.

More homeowners are getting behind on their mortgage payments and homeowners’ association dues, creating serious concerns for their financial and housing future.

ATTOM Data reports that 12,318 homeowners in California received a foreclosure notice during the first quarter, a 12.3% increase from the fourth quarter – and up 15.1% from a year ago. 

About one of every 1,200 homeowners in the state have been notified about missing their mortgage payments, the 17^th-highest rate in the U.S.

Eight of 10 cities with data had an increase in foreclosure notices during the first quarter, including a 32% increase in Los Angeles and 25% in Bakersfield. Sacramento and San Diego also endured a jump in foreclosure notices compared to a year ago (see table, below).

‘Borrowing costs and affordability challenges’

Now, just because a homeowner receives a foreclosure notice doesn’t mean they will lose their home. Many homeowners catch-up on those missed payments or they can place their home on the market and make a quick sale.

Nationwide, about 42,430 entered foreclosure, an 18% increase from a year ago. California had the third-most foreclosure starts at 2,786, behind Florida and Texas. 

“Foreclosure activity continued its gradual trend higher in April, with both foreclosure starts and completed foreclosures posting annual gains,” said ATTOM CEO Rob Barber. “While overall filings declined from the previous month, the year-over-year increases suggest lenders may be working through distressed inventory as higher borrowing costs and affordability challenges impact some homeowners. Even so, foreclosure activity remains significantly below pre-pandemic levels.”

Indeed, the current foreclosure activity is nowhere close to the housing market collapse during the Great Recession, when 60,000 foreclosures happened almost every quarter between 2008 and 2011 in California, according to Cotality.

HOA liens also rise

While thousands of homeowners deal with mortgage payments, others are facing liens from their homeowners’ associations, according to a recent report by Benutech. 

Blame soaring community dies, escalating insurance premiums and maintenance costs.

Nationwide, almost 285,000 homeowners had HOA liens filed against their property in 2025, an 8.6% increase compared to a year earlier. California was among the five states with the most HOA liens filed, along with Arizona, Florida, Georgia and Texas.

Riverside County had the most HOA liens in the state with 3,315 in 2025, an 18.9% increase compared to 2024 (see table, below). The percentage is also the highest in the state. Los Angeles County had the second-most HOA liens at 2,978, a 14.6% increase from a year earlier.

Alameda and Santa Clara counties also had significant annual increases at 18.7% and 15.1%, respectively.

While Riverside County had the most and the largest percentage increase of HOA liens in the state, nearby San Bernardino County – the other half of the Inland Empire — had a 4.5% drop from a year earlier. 

Like foreclosure notices, homeowners can get up to date on HOA dues. However, many homeowners have their monthly HOA dues paid through their mortgage. So, some of the homeowners with foreclosure notices could also be struggling with their HOA dues.