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HOA Questions - Foreclosures and Associations

Question: What happens when a homeowner's association board forecloses upon and becomes the owner of a home due to unpaid assessments?


Answer: When an association forecloses upon a home to recover the amount owed to them due to delinquent assessments the home is either bought by a buyer and the association is able to recoup their assessments or, if there is no buyer, the title of the home is then transferred to the association.  When the title transfers, the association is now the owner of the property and the lien the association had on the home is extinguished.  The lien is extinguished because of California’s Code of Civil Procedure §726(a) which states that there can only be one form of action for the recovery of any debt or the enforcement of any right secured by mortgage upon real property or an estate. Then, to offset the delinquent assessment that are owed, after the 90 day redemption period has ended, the association has the right to evict the previous owner if they are still occupying the house and can then rent out the home.


To submit questions to The Judge Law Firm please email

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