InnoVest Resource Management's Foreclosure Forum

Home Discussion Board "Hands-On" Training Title Holding Trust Speaking Schedule Store Foreclosure Codes 50 State Resource Data Foreclosure Glossary Foreclosure Statistics 60+ Yrs Interest Rates Fillable Forms Archived Articles Dingbat Retirement Plan Links Contact / Map Home

[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] Non-judicial foreclosure of an HOA lien in CA.. Posted by Ward-CA- on April 29, 2003 at 12:44 AM In Reply to: Association Forclosure posted by John-CA on April 29, 2003 at 8:39 AM : Hi Ward : Got a question. I did a title search on a property in FC (on the first) and noticed there was a second default notice posted recently. I was a bit surprised to learn it was the Association they live in that was forecloseing. There had been a number of Delinquent Assessments before this but I didn't think they'd start this FC procedure so soon. Anyway, that isn't a big deal but what really shocked me was the NOD they posted says: : "Notice of Default and election to sell for default in pament of assessment lien". : It goes on to say it can SELL the property "without court action". I also says the owners have 3 months to reinstate. This sounds a lot like a "trustee sale"-like set up. Here's my question: I thought Associations had to do judicual foreclosures in CA. In fact, in our discussion in your class I thought you mentioned that the primary source of judical FC's in CA were from Associations. Why does this seem to imply they can do a "power of sale"-like forclosure, ie trustee sale. I didn't think that was possible in CA. In fact, I've been told judicial foreclosures in CA take a LOT longer than 3 months.... : Thanks... : jom-CA =•=•=•=•=•=•=•=•=•=•= John, Where oh where were you during the training? Just kidding. Well, I can see you have pieces of the puzzle but not the overall picture. So let’s start with a fresh page. About a dozen or so years ago the California Association of Home Owners Associations successfully lobbied the California legislature to change California Civil Code § 2924 to make it applicable to the non-judicial foreclosure of HOA liens. Since that time it has been the favored method of enforcing the payment of HOA dues. I’m sure I covered this in the 3 day foreclosure training class. The reason I bring it up in the class is to warn the trainee that since there’s still a lingering controversy over the non-judicial foreclosure of HOA liens most title companies won’t give you title insurance for a year after acquiring title to a condo under such a circumstance. The problem isn’t an issue of legality with title companies — they just don’t want to have to defend a lawsuit for a new owner on this issue. Waiting a year insures it won’t come up. Hope this clears things up. Follow Ups: Re: Non-judicial foreclosure of an HOA lien in CA.. jom-CA 1:03 PM, 04/29/03 (1) Practice changes slower than law SeanW 2:15 PM, 04/29/03 (0) Post a Followup: Name : E-Mail : Subject : Comments: : : Hi Ward : : Got a question. I did a title search on a property in FC (on the first) and noticed there was a second default notice posted recently. I was a bit surprised to learn it was the Association they live in that was forecloseing. There had been a number of Delinquent Assessments before this but I didn't think they'd start this FC procedure so soon. Anyway, that isn't a big deal but what really shocked me was the NOD they posted says: : : "Notice of Default and election to sell for default in pament of assessment lien". : : It goes on to say it can SELL the property "without court action". I also says the owners have 3 months to reinstate. This sounds a lot like a "trustee sale"-like set up. Here's my question: I thought Associations had to do judicual foreclosures in CA. In fact, in our discussion in your class I thought you mentioned that the primary source of judical FC's in CA were from Associations. Why does this seem to imply they can do a "power of sale"-like forclosure, ie trustee sale. I didn't think that was possible in CA. In fact, I've been told judicial foreclosures in CA take a LOT longer than 3 months.... : : Thanks... : : jom-CA : =•=•=•=•=•=•=•=•=•=•= : John, : Where oh where were you during the training? Just kidding. Well, I can see you have pieces of the puzzle but not the overall picture. : So let’s start with a fresh page. About a dozen or so years ago the California Association of Home Owners Associations successfully lobbied the California legislature to change California Civil Code § 2924 to make it applicable to the non-judicial foreclosure of HOA liens. Since that time it has been the favored method of enforcing the payment of HOA dues. : I’m sure I covered this in the 3 day foreclosure training class. The reason I bring it up in the class is to warn the trainee that since there’s still a lingering controversy over the non-judicial foreclosure of HOA liens most title companies won’t give you title insurance for a year after acquiring title to a condo under such a circumstance. : The problem isn’t an issue of legality with title companies — they just don’t want to have to defend a lawsuit for a new owner on this issue. Waiting a year insures it won’t come up. : Hope this clears things up. Optional Link URL: Link Title: Optional Image URL: [ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] WWWAdmin 2.0a © 1997 Matt Wright and DBasics Software Company, All Rights Reserved

Information provided by this website is for informational purposes only and is not a substitute for professional advice. Please consult your investment advisor and/or attorney before entering into any transaction.

Copyright © 1997-2003, InnoVest Resource Management
http://www.foreclosureforum.com

InnoVest Resource Management, 4569-A Mission Gorge Place, San Diego CA 92120-4112
(619) 283-5444, Fax (619) 283-5455