Whenever a lender forecloses on an owner, the association's collection efforts are hampered because lenders often fail to notify the association of the name and address of the new owner, whether that owner be a third party or the bank itself. If there is no third party purchaser at a bank's foreclosure auction, the property goes into the bank's REO Department.

Blanket Notice. To avoid any delay in billing the new owner their portion of the assessments, associations can record a blanket "Request for Notice" which requires a trustee to mail to the association a copy of the trustee's deed once a foreclosure sale takes place. The trustee must mail the deed within 15 business days of recordation. Civil Code §2924b. The notice must contain the following:

• A legal description or assessor's parcel number of all units/lots in the development.

• The name and address of the association or managing agent.

• A statement that the association was created for the purpose of managing a common interest development.

RECOMMENDATION: Boards should contact legal counsel for the proper form and recording procedures. If your association needs assistance preparing and filing a "Request for Notice," contact us.