💬 Join us to post & get advice from 50,000 HOA & Condo leaders.

Create Free Account →

⚡ Takes 30 seconds

Already a member? Log in

KathyU1 (California)
Posts: 1
Posted:
Hello, new here, and am in need of help.
I am writing on behalf of our homeowner's association. We have nine units in our complex so it is very important that we have enough money in our general fund to cover our expenses. We currently have an owner who is behind for three months and they have been foreclosed on by their lender. Today, I did a search at our county building and found out that the property will be going to auction. We need to collect what is owed to the association from the lender. How do I go about this? Sueing for money owed? It is bank owned. Is there a certain procedure I must follow? Is this a small claims action or what kind of lien must I file?

I would really appreciate any help I can receive from those of you who are familar with Ca. HOA law, and procedure regarding collecting a debt, (ongoing until the property is sold), from a bank owned unit in our complex.

Thank you
JosephW (Michigan)
Posts: 882
Posted:
Kathy, sorry no one has responded yet. The lender will probably only be responsible from the time it took the title back at foreclosure (You can sue them if they are in now default, but make sure you follow all of the applicable state laws). Anything due prior to that would still be owed by the defaulting owner. You could try small claims but they don't sound very collectible. Here is the link to the state law:

http://www.leginfo.ca.gov/cgi-bin/displaycode?section=civ&group=01001-02000&file=1366-1367.5

Go down to section 1367.4 near the bottom

http://www.leginfo.ca.gov/cgi-bin/displaycode?section=civ&group=01001-02000&file=1365-1365.6

Go down to 1365.1.

Joe

Joseph West
Official HOATalk.com Sponsor
Community Associations Network, LLC
www.CommunityAssociations.net

*See legal notice below (end of page) or go to www.hoatalk.com/legal
BrianB (California)
Posts: 2,820
Posted:
yup, your suit is with the owner. I think it is too late to properly file a lien on the property, given you say it is verified to be at auction (which takes away the "owner may SAY it's in foreclosure, but until it's proven" arguement).

you will have to track the owner/debtor down, and continue the collections process.

🎯 You've read this entire discussion

Join the conversation with 50,000 HOA & Condo Leaders:

  • ✓ Ask follow-up questions
  • ✓ Share your experience
  • ✓ Get expert advice
  • ✓ Access 350,000 discussions
Create Free Account →

⚡ Takes 30 seconds

Already a member? Log in here