HOA Filed a lein HeLP

Started by RobertS23 • 4 replies • 1449 views

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RobertS23 (California)
Posts: 10

Posted:

HOA fIled a lein, but did not notify me of the open meeting......also they changed management does the new management have to redo the process.

According to calif law if hoa forcloses I have 90 days before they sell just loik a reg mortgage. Is it true I have an additional 90 days after forcloser sale to redeem for a total of 210 days?

If they foreclose, that process takes a minimum of 120 days. After that you still have 90 days to redeem the property (see CA Civil code 1367.4(c)(4)). If they do foreclose the loans from Countrywide would remain, unaffected, other than the fact that you no longer own the property (though you would still be responsible for the loans).

SteveM9 (Massachusetts)
Posts: 3,699

Posted:

I don't know about California time lines, but....

New management does not need to redo the process as long as they have the proper paperwork on file from the last company and they are confident it is correct.

Its just a lien, not a foreclosure. Although they have started taking the first steps to eject you from the house. Be prepared for addition steps. What is their time line? Call the HOA, and ask them. Communicate with them. Worst thing you can do is ignore them at a time like this.

As far as your loan goes....lets say they do foreclose. And you house is sold at auction for $100,000 and you owe $200,000 on the house. Countrywide can legally go after you for the extra $100,000 you still owe. Most of the time lenders do not, because typically the person has no money, but it does happen. At this point, personal bankruptcy would be the answer.

SteveM9 (Massachusetts)
Posts: 3,699

Posted:

PS. The HOA doesn't have to notify you that they are talking about placing a lien on your house. They would assume you already know a lien will be placed because they have been sending you bills and you haven't been paying them.

MaryA1 (Arizona)
Posts: 7,043

Posted:

Robert,

I don't understand what filing a lien and notifying you of an open meeting have in common. If members are required to be notified of all meetings by CA law, that does not necessarily mean you must personally receive notice. Usually a notice most be posted in an area so all members can see it. Check this out in the CA Davis Stirling Act.

Filing a lien is the first legal step taken to collect delinquent assessments. I would suggest you pay your delinquencies immediately. The next step would be to obtain a judgment -- a court order to pay the lien. If you fail to pay the judgment, the next step is to obtain a default judgment. If you still continue to fail to pay, then the final step is to foreclose.

You should check your CCRs and also the CA Davis Stirling Act very carefully. Usually the member must be notified of the delinquency and informed that they have the right to meet with the BOD to appeal before a lien can be filed. If your BOD did not follow the proper process then they are in violation of the gov. docs and perhaps also state law.

I hope this opens your eyes to the fact that paying your assessments on time is very important and there can be dire consequences if you fail to do so. If you are having financial difficulty you should contact the BOD and ask to meet with them to perhaps arrange a payment plan. Most boards are receptive to this and some will even waive the late fees. But, you don't get if you don't ask!!

BTW, after you pay your account in full, make certain the assn files a release of lien document.

SteveM9 (Massachusetts)
Posts: 3,699

Posted:

One more thing....... and you wont like this either.....

In our HOA, if we do foreclose or your bank forecloses, etc, and your house is sold at auction for $100,000 and you owe $200,000 on the house. At this point, all of the $100,000 would go to the bank, because they are first in line.

So lets say there is a bill for $2400 still owed to the HOA for dues and lawyer fees. We file a claim in small claims court. Just because you don't live there anymore doesn't mean you don't owe past bills. The judge could order a garnishment of wages, selling off your assets, etc. Although once a judgment has been made, people I've seen just pay it.

The electric, gas, phone company wouldn't let you off the hook just because you moved, we don't either.

I know it sounds harsh, but it must be done to maintain the HOA. If the HOA had no money to maintain the property, the place would look horrible and everyone's property value would drop. At this point, everyone looses.

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