On the day of the foreclosure sale, the association can decide whether or not to complete the sale. The nonjudicial foreclosure process is flexible and an association can do any of the following on the day of sale:
- Complete the Sale. If there are bidders, the association will be paid in full. If there are no bidders, the association becomes the owner of the property in lieu of collecting the debt. A foreclosure sale is one of the only ways to terminate the ownership interest of a non-paying owner.
- Postpone the Sale. The sale can be postponed any number of times and for any length of time for up to one year from the original sale date. The board can decided to sell only if there is a bidder willing to buy the property. This avoids having the association assume ownership of the property if there are no bidders and preserves the debt so that the association can attempt to collect it by other methods.
- Cancel the Sale. The association could cancel the sale altogether and pursue a different method of collection.
Recommendation: The association's decision to postpone a sale should be made in consultation with legal counsel.
ASSISTANCE: Associations needing legal assistance can contact us. To stay current with issues affecting community associations, subscribe to the Davis-Stirling Newsletter.