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[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] Re: Interesting but can you give a little more info? Posted by Geri on May 20, 2009 at 4:16 PM In Reply to: Interesting but can you give a little more info? posted by BIG on May 20, 2009 at 4:05 PM For most HOA associations in California the CCRs state that a lien recorded by the HOA board for delinquent dues or assessments is subordinate to the 1st trust deed on the property. This is probably reuqired because no banks would loan to a buyer if that was not hte case. So, when the foreclosure on the 1st trust deed happens, the HOA lien is wiped out and all delinquent assessments and dues are wiped out. So, when HOA documents are drawn for a subsequent sale, the HOA cannot include delinquencies that occurred prior to the foreclosure event. : Thanks for the information. I'm not followingyou 100%.. What do you mean if there is "NO delinquent dues or assessments in the HOA documents?" If the previous owner : is not up to date on their dues there is not going to be a balance due of zero on these documents. : Please elaborate. : BIG : : Well, I just got an answer to my own question. I finally got the Title company to agree. For those that have same situation, here is the answer. When the HOA returns their documentation package to escrow, if there are NO delinquent dues or assessments in the HOA documents, then the title company can remove the issue from the Preliminary Title Report. : : : : : : I have been an enthusiastic lurker here for awhile. I intend to take Ward's course in June, but I have an immediate issue. Want to see if anyone has had the same issue before. : : : When I purchased a property at trustee sale there was an HOA lien for unpaid dues and assessment. According to the HOA CCRs, this lien is subordinate to foreclosure on the 1st trust deed. So, when I recorded Trustee Deed it should be null and void. There is no issue with the HOA, they recognize that their lien is no longer valid with the foreclosure and they are not trying to collect the delinquency. : : : The problem is with title company as I go to get title insurance for the buyer of the property. They are requiring that the HOA record a Release of Lien. The HOA refuses to record a Release of Lien because they were not paid and their lawyer indicates that they have no requirement to record a Release of Lien. It seems to me that this would be the same situation for all kinds of 2nd or 3rd lien holders after a foreclosure. : : : Why is title requiring a release of lien when everything was wiped out by foreclosure? Any ideas on how to get the release recorded, if it is required? Follow Ups: Post a Followup: Name : E-Mail : Subject : Comments: : For most HOA associations in California the CCRs state that a lien recorded by the HOA board for delinquent dues or assessments is subordinate to the 1st trust deed on the property. This is probably reuqired because no banks would loan to a buyer if that was not hte case. So, when the foreclosure on the 1st trust deed happens, the HOA lien is wiped out and all delinquent assessments and dues are wiped out. So, when HOA documents are drawn for a subsequent sale, the HOA cannot include delinquencies that occurred prior to the foreclosure event. : : Thanks for the information. I'm not followingyou 100%.. What do you mean if there is "NO delinquent dues or assessments in the HOA documents?" If the previous owner : : is not up to date on their dues there is not going to be a balance due of zero on these documents. : : Please elaborate. : : BIG : : : : Well, I just got an answer to my own question. I finally got the Title company to agree. For those that have same situation, here is the answer. When the HOA returns their documentation package to escrow, if there are NO delinquent dues or assessments in the HOA documents, then the title company can remove the issue from the Preliminary Title Report. : : : : : : : : : I have been an enthusiastic lurker here for awhile. I intend to take Ward's course in June, but I have an immediate issue. Want to see if anyone has had the same issue before. : : : : When I purchased a property at trustee sale there was an HOA lien for unpaid dues and assessment. According to the HOA CCRs, this lien is subordinate to foreclosure on the 1st trust deed. So, when I recorded Trustee Deed it should be null and void. There is no issue with the HOA, they recognize that their lien is no longer valid with the foreclosure and they are not trying to collect the delinquency. : : : : The problem is with title company as I go to get title insurance for the buyer of the property. They are requiring that the HOA record a Release of Lien. The HOA refuses to record a Release of Lien because they were not paid and their lawyer indicates that they have no requirement to record a Release of Lien. It seems to me that this would be the same situation for all kinds of 2nd or 3rd lien holders after a foreclosure. : : : : Why is title requiring a release of lien when everything was wiped out by foreclosure? Any ideas on how to get the release recorded, if it is required? [ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] WWWAdmin 2.0a © 1997 Matt Wright and DBasics Software Company, All Rights Reserved

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