Sterling Act

Started by RobertS23 • 27 replies • 1666 views

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RobertS23 (California)
Posts: 10

Posted:

Is this correct? I am broke. I will lose my condo, When it forcloses by the hoa can I stay in it until my 90 day redemption is over. I know this sounds bad but I need to save somthing before I move.

Right of Redemption

When property is sold through foreclosure, buyers take ownership subject to a 90-day right of redemption, which allows the foreclosed owner to recover the property if he pays the delinquency and any fees and costs. Civil Code §1367.4(c)(4), Code of Civil Proc. §729.035

Typically, the trustee will hold the money received in the auction for 90 days. If the former owner exercises the right of redemption and pays the amount owed, the buyer has his/her money refunded.

DanaB1 (Connecticut)
Posts: 319

Posted:

Robert, I would think you should be asking the bank that question, no?

MaryA1 (Arizona)
Posts: 7,043

Posted:

Robert,

I would suggest getting on the phone and talking to a title agent. They are a wealth of info! Also, have you thought about filing for bankruptcy?

SteveM9 (Massachusetts)
Posts: 3,699

Posted:

Well, he doesn't necessarily need to file for bankruptcy just because he is loosing his house. Most people these days do not. The just let the bank take it.

Bankruptcy these days is more about medical bills and other bills, not homes.

RobertS23 (California)
Posts: 10

Posted:

Well Countrywide has done nothing yet, and the HOA placed the lein may26th, I assume they will start forcloser in July, I was just wondering how much time I have to move once that happens. According to ca law hoa has to follow the same forclosuer timeline before sale date 90 days. After accordding to Sterling act I have another 90days to redeem, I fI can stay and not kicked out I will.

SteveM9 (Massachusetts)
Posts: 3,699

Posted:

Too many variables. Most HOA's drag their feet in the foreclosure process. Neither party wants to do it. It might be 90 days, it might be 2 years. Depends on the HOA. I suppose you would have to talk to them.

RobertS23 (California)
Posts: 10

Posted:

yea talk to them funny. I have never been lat and even carried a surplus on my dues. Now that everything fell apart they jump on it and just act like wolves. I understand they have to pay there bills, but geez.

DanaB1 (Connecticut)
Posts: 319

Posted:

Hey Robert, do you mind if I ask what the circumstances were in your case for this coming to be? Did you lose your job or over-extend yourself to get into the home to begin with? Was it a sub prime loan with a high rate?

Yours is the first post that I've read from the physical person that is getting foreclosed on.

I hope you make out alright.

My best to you.

DanaB1 (Connecticut)
Posts: 319

Posted:

Quote:

Posted By RobertS23 on 06/08/2009 7:27 AM
yea talk to them funny. I have never been lat and even carried a surplus on my dues. Now that everything fell apart they jump on it and just act like wolves. I understand they have to pay there bills, but geez.

Robert,

As a board member I know that at least with us it's pretty cut and dried; your 60 days late and your account automatically goes to the attorney. It's business.

I'm not sure but I've heard of associaions that try to work with those in arrears but I'm not sure the outcome or the process.

RobertS23 (California)
Posts: 10

Posted:

Single Dad lived here 9 years never late. Had to refi, Bad loan first and second. Total of 293000.00 Condos selling according to Zillow.com 169000.00 now. So im upside down big. Economy tanked and I couldnt keep up. Unable to pay HOA and mortgage so Im saving the money to move into a apt. Credit is shot. blah blah blah.

I knew they would lein the house but i figured countrywide would have moved first. I dont know if hoa will move quickly in july so im just buying time. yea its bad, but all i can do.

DanaB1 (Connecticut)
Posts: 319

Posted:

I forgot to mention that once your account goes to the attorney with us that you then deal only with the attorney. They know what should and shouldn't be said; i.e. the process.

I'd suggest you contact the association attorney with your questions, perhaps they can help.

RobertS23 (California)
Posts: 10

Posted:

I have SBS Lein Services there just as bad as the HOA. Threating and all.

MaryA1 (Arizona)
Posts: 7,043

Posted:

Robert,

Have you checked out the Davis Stirling Act under "lien for assessments". In AZ an HOA cannot foreclose until the delinquency reaches $1,200 or is 1-yr past due, whichever comes first. CA law may have a similiar provision which might give you more time. Again, have you checked into bankruptcy? I seem to recall reading that the HOA can't do anything if the member files bankruptcy.

DanaB1 (Connecticut)
Posts: 319

Posted:

Wow, that sucks.

Good luck Robert.

MaryA1 (Arizona)
Posts: 7,043

Posted:

Dana,

I know of no assn attorney who will speak to a member! All communication is with board members only.

DanaB1 (Connecticut)
Posts: 319

Posted:

Not here Mary. Foreclosure, lawsuit, attorney is contact.

First of all, what would we say? We have no foreclosure experience.

NancyL4 (California)
Posts: 60

Posted:

In California, an HOA cannot lien until the delinquent assessments are $1800. Since you are under water on your mortgage, your HOA doesn't really gain anything by placing a lien. They are in a second position. Seems like they just want someone in your condo that has the ability to pay their dues. You can check out the foreclosure process by searching civil code sections 2923 and 2924. It has nothing to do with Davis-Stirling.

MaryA1 (Arizona)
Posts: 7,043

Posted:

Dana,

Aren't you a board member? If so, then if your HOA is foreclosing you should have some foreclosure experience. Our board members are very savy regarding foreclosure proceedings and I believe our PM knows as much as any attorney!!

RobertS23 (California)
Posts: 10

Posted:

no im a owner. Nancy ive read the codes you sent, do they have to follow the same rules as countrywide when forclosing? NOD 90days to answer, after 20 days to sale?

MaryA1 (Arizona)
Posts: 7,043

Posted:

Robert,

The actual foreclosure procedures are most likely based upon federal standards. However, in order to foreclosure the HOA must follow whatever is in their gov docs and whatever is prescribed by state law - the Davis Stirling Act. So the HOAs requirements to foreclose may be different than Countrywide's. In other words, as Nancy stated, your delinquency must reach $1,800 in order for the HOA to foreclose. However, Countrywide may be able to foreclose if you only miss one payment of the mortgage no matter what the amount is.

RobertS23 (California)
Posts: 10

Posted:

I understand. Calif allows 90 day redemtion after the sale by the hoa. Does that mean I can occupy the condo during the after sale redemption? Sterling act is where I found the 90 day redemption.

NancyL4 (California)
Posts: 60

Posted:

I don't know if you will be able to occupy your condo after it goes to sale. It sounds like your HOA is going to be the bidder at the sale. They could offer Countrywide, now Bank of America an amount less than the current balance on your mortgage and resell your unit in hopes of recovering their costs and your past due assessments. I think that after it goes up for auction, the successful auction bidder can evict you. I am not a lawyer and don't know about the eviction process. Perhaps, someone else does.

RobertS23 (California)
Posts: 10

Posted:

Thank you, this what i was refering to>

Right of Redemption

When property is sold through foreclosure, buyers take ownership subject to a 90-day right of redemption, which allows the foreclosed owner to recover the property if he pays the delinquency and any fees and costs. Civil Code §1367.4(c)(4), Code of Civil Proc. §729.035

Typically, the trustee will hold the money received in the auction for 90 days. If the former owner exercises the right of redemption and pays the amount owed, the buyer has his/her money refunded.

SteveM9 (Massachusetts)
Posts: 3,699

Posted:

Good article here:
http://www.berding-weil.net/newsletter/2008/november/4/

PS. Google is your friend. (wink)

RobertS23 (California)
Posts: 10

Posted:

Yes google is good, still if the hoa takes the condo the 90 day redemption is unclear if I can occupy or be kicked during the 90days

DanaB1 (Connecticut)
Posts: 319

Posted:

Quote:

Posted By MaryA1 on 06/08/2009 7:54 AM
Dana,

Aren't you a board member? If so, then if your HOA is foreclosing you should have some foreclosure experience. Our board members are very savy regarding foreclosure proceedings and I believe our PM knows as much as any attorney!!

Yes Mary, board member and President. I am aware of foreclosure proceedings as I've had our attorney eduacate me. But policy is that after 60 days the account goes to the attorney and he takes it. I like it that way to be honest, I'm swamped as it is and I'd rather not run into a he said she said with an owner over the loss of their home. My attorney deals with this on a daily basis(not here thankfully).

MaryA1 (Arizona)
Posts: 7,043

Posted:

Dana,

We have a number of homes that are on "foreclosure watch" and have been turned over to the attorney. Our PM is in constant contact with the attorney and keeps up on the status of each account which, in turn, is reported to the board each month.

AnnD1 (California)
Posts: 7

Posted:

MaryA1

In California it is $1800. or 12 months. You are right about the bankruptcy. HOA's hands are tied once the bk is filed.

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