Texas Appellate Court decision (November 4, 2014).
A homeowners association filed an action for damages and foreclosure against homeowners that wee delinquent in the payment of assessments owed to the association. The homeowners failed to appear in the action and the court entered a default judgment in favor of the homeowners association for damages but denied the association the remedy of foreclosure on its assessment lien. The homeowners association appealed on the basis that the governing documents for the homeowners association expressly provide for the remedy of foreclosure.
The appellate court reversed the trial court decision finding that the homeowners purchase of the subject property carried the obligation to pay assessments in accordance with the governing documents with provided for a lien in favor of the homeowners association to secure payment of the assessments, and which provided for the remedy of judicial foreclosure for nonpayment of the assessments. The court further ruled that no evidence was necessary to support the default judgment because the failure to file an answer to the petition was deemed an admission of the allegations contained in the petition.
See case decision: Brightwater_Homeowners_Ass’n