Found an issue on this page? Let us know and we will look into it as soon as possible.
What is the procedure for foreclosing on a lien for Homeowner Association Dues.
Anonymous1 views2 answers
The person living in a condo unit has not paid their HOA dues plus interest and penalties of $7870.66. The Board wants to foreclose and evict the owner. How
is this accomplished? I believe the Board can only do a Judicial foreclosure. How does the Board find out if there is a 1st TD and or a 2nd TD on the property? If there is a 1st TD, 2nd TD and there is no equity for the lien, does the 1st TD get the proceeds and the 2nd TD any remainder? Does the Board get title free and clear after the judicial foreclosure? Can we then evict and seek an attachment and garnish former owner's wages? Is the lawsuit filed in Bellflower or Nowalk court?
An action to foreclose a lien may be anywhere in the County where the real property is located. The HOA lien once foreclosed would result in the HOA being placed in the position of the former owner, including the obligation to service the prior encumbrances, which comes down to a question of the equity, if any, in the unit. Certainly the HOA could evict the current owner once it acquires his title. Any realtor can give you a property profile showing current lenders of record, and any title company can give you a report with substantially similar but more reliable information. Alternately, the HOA could sue and get a judgment (up to $7,500) in the small claims court and executing on the judgment. The HOA should consult a local real estate attorney.
Your HOA needs to see a real estate lawyer to answer these many questions. Usually an HOA Deed of Trust is executed before a condo owner's mortgage, so they get priority, even for a relatively small debt. The HOA's particular CC&Rs will contain remedies in the event of the homeowner not paying their dues, so the HOA needs to refer to those, and needs a current title report ont he property to see what liens exist.
Disclaimer: Please note that this answer does not constitute legal advice, and should not be relied on, since each state has different laws, each situation is fact specific, and it is impossible to evaluate a legal problem without a comprehensive consultation and review of all the facts and documents at issue. This answer does not create an attorney-client relationship.
