Who Can Foreclose. There are three ways owners can lose their homes: (i) a lender can foreclose after an owner stops making mortgage payments; (ii) the state can foreclose if an owner stops paying their property taxes; and (iii) a homeowners association can foreclose if an owner is delinquent $1,800 or twelve months, whichever comes first.
| Boards must approve and then record a lien to protect association's interest.
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A notice of default starts the foreclosure process once the board approves the sale.
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A notice of sale sets the sale date for auction of the property.
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Auction of the property is done by a trustee. Sale defaults to HOA if no bid higher than amount of delinquency.
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Upon sale, a 90-day redemption period starts.
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The foreclosure timeline is approximately one year.
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ASSISTANCE: Associations needing legal assistance can contact us. To stay current with issues affecting community associations, subscribe to the Davis-Stirling Newsletter.