HOA Lien (California)

Without getting into to many details, I lost my job Jan 2009, I have been trying to pay my HOA dues, by giving the majority of tax return, selling land, and a 3 month temp job. I was behind $3500. Our collection policy states the managment company has to send out a 60 day notice, prior sending out a collection lien letter. I never received the 60 day notice, and the collection lien letter was sent back unclaimed, it was mailed certified mail. They have now put a lien on my home. The added $250.00 collection fee and $475.00 fee. I realize I am behind in my payments, but, I do I have legal recourse, because I didn't the notices before they put the lien on my home? I have lived in my home for 14 years, and because of job loss I am struggling. If I claim bankruptcy, will that wipe this lien? If so, would I continue paying dues, or does the bankruptcy wipe futures dues as well?

Your best bet isn't to hire a lawyer but just work on getting rid of the lien. During the lien process it can or is published in a local newspaper to considered "Public Notice" besides the certified letter sent. It would be an extremely hard issue to prove you weren't notified of the lien.

I would work out a payment deal with your HOA. They can't make the lien go away unless it is justified. However, they won't be ADDING to it either if you continue to pay your current dues. This will atleast stop the bleeding and the lien from gathering more costs.

When I was president, I worked deals with some members who were in a similar bind to avoid being liened on. We had a policy that 6 months behind on dues equal lien. However, IF they were able to catch up and double their dues payments prior to the 6 months being up, we didn't lien. In some cases, if they did that then I would have the late fees waived for those two months. You can't get blood out of turnip and it was best they did pay their dues.

You may ask to work out a payment plan that will work for both sides. Your ultimate goal is to make sure they don't turn your lien into the foreclosure process. In the meantime, you won't be able to sell your home until that lien is paid off. You keep the home!

Unless you can come up with the $4225 in back dues for the HOA, its likely you will be foreclosed on and loose the house. Because it is a secure debt, it has nothing to do with your bankruptcy.