In a “normal” bank foreclosure on a mortgage, the bank can only charge a certain amount of lawyer’s fees associated with the foreclosure.
In an HOA foreclosure by advertisement, there is no limit to what a lawyer can charge the homeowner. Any limit would be in the HOA bylaws and declaration, and there is usually no limit. If the HOA decides to use judicial foreclosure (which is very rare), the lawyer’s fees are reviewed by the judge.
This means that once an HOA decides its lawyer will handle the lien and foreclosure, the lawyer can charge whatever he or she wants.
All the lawyer’s fees are passed on to your bill as the homeowner, not to the HOA. If you are trying to pay the HOA what you owe so you can keep the home, it gets more and more expensive after it is “referred” to an HOA lawyer. This is true before the sale, and during the redemption period.
Unlimited lawyer’s fees also makes getting legal help, even free legal help, hard. Even if you qualify for legal aid, it often works against you because it runs up the HOA lawyer’s bill.
After an HOA refers a case to its lawyer, your lawyer can only talk to that lawyer, not to the HOA or HOA management company. And the HOA lawyer charges for every phone call, fax, letter, etc. Those charges are pushed onto your bill. Often, it works out better and cheaper if you can work out a repayment plan directly with the HOA board or management company well before the case is referred to the HOA lawyer. But if you find yourself in foreclosure by your HOA, it may still make sense to talk to a lawyer to see if you have any options.