"HOA Foreclosures: Bargain Homes Sold at Steep Discounts"

More than 250 homes in Colorado have been sold at sheriff's auctions for a fraction of their market value after being foreclosed on by homeowners associations (HOAs) over unpaid debts. Some homes were auctioned off for as little as $60,000 or less, erasing years of equity for the homeowners. The HOA foreclosure process, governed by the Colorado Common Interest Ownership Act, can result in significant fees and interest accumulating on the debt owed to the HOA. The auctions are often advertised in low-circulation print newspapers and can be difficult to track. The Colorado legislature considered changing state law to protect homeowners' equity during HOA foreclosures but backed down under pressure from the associations.