Dear George: We tried to refinance our mortgage, but the bank informed us that a lien exists on our property. In 1995, our former homeowners association filed a lien for nonpayment of dues on our property – this is news to us. We’ve lived here since 1979 and have never missed a payment on anything. The HOA doesn’t exist anymore, so there’s no one we can contact to clear this up. The bank is asking for a release of the lien before the new loan can proceed. How can we fix this?

Answer: If the lien was filed in 1995, the ability to foreclose is probably past the statute of limitations, so it can’t be enforced. Sec. 209.004 (d) of the Property Code states that if the HOA has not filed a management certificate, they lose the right to collect amounts owed to the HOA. Assuming suit has not been filed and no management certificate has been recorded, the entity no longer exists (check with the Texas secretary of state for verification), so there is very little likelihood of risk. The title company can insure the lien priority to the lender and assume that risk. If they will not, change the title company.