Initiating Foreclosure
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INITIATING FORECLOSURE

Associations are allowed to record a lien but may not foreclose until the delinquent assessment is at least $1,800 or the delinquency is at least twelve months old. (Civ. Code §5720(b)(2).)

Executive Session Vote.
The decision to initiate foreclosure must be made by the board of directors and may not be delegated to an agent of the association. The board must approve the decision by a majority vote of the directors in executive session. (Civ. Code §5705(c).)

Open Meeting Minutes. The vote must then be recorded in the minutes of the next open meeting of the board. However, boards must maintain the confidentiality of owners' names by identifying the property by the assessor's parcel number rather than using the name of the owner. A board vote to approve foreclosure of a lien must take place at least thirty days prior to any public sale. (Civ. Code §5705(c).) Failure to do so could be the basis for a legal challenge to the foreclosure action.

WHEREAS, the Association previously recorded, pursuant to Section 5673 of the Civil Code, a lien against parcel number _____________________, for delinquent assessments;

WHEREAS
, Section 5705 of the Civil Code requires the board of directors to authorize, by majority vote of the board in executive session, the foreclosure of a lien for delinquent assessments;


WHEREAS, the Owner is now delinquent in the payment of regular or special assessments [OPTION 1] in an amount that equals or exceeds one thousand eight hundred dollars ($1,800), exclusive of any accelerated assessments, late charges, fees and costs of collection, attorney's fees, or interest [OPTION 2] which are more than twelve months delinquent;

RESOLVED, the Association authorizes {entity assigned to handle foreclosure} to foreclose on the lien to recover the delinquent amounts and any late fees, interest charges, and other collection-related amounts.

This resolution was adopted by the board of directors at an executive session held on the ____ day of ___________, 20____.

__________________________________
Signature of Authorized Board Member

Title: ____________________


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Adams Stirling PLC