I am looking at the property where the county has recorded a “Declaration of Covenants and Restrictions” . It’s purpose is to enforce a code violation related to the conversion of a barn to a SFR without permits. The owner has basically ignored this and not completed any of the work or paid any of the fees, etc. I know that the code violations will have to be corrected. The docuement has a provision where failure to comply will result in civil penalties of $65 per day. I have talked to the code enforcement folks, and they were not very helpful, but I asked them about how they handled the penalities after foreclosure. They said foreclosure had no impact but that they work with a new owner to reduce the penalties and get the violations corrected. This document was recorded after the foreclosing Deed of Trust, so my question is, does foreclosure wipe out this docmenet or at least the accrued penalties?
The question to ask is whether or not the fees will be added to the property taxes if they go unpaid. I’ve fought this battle a couple of times with mixed results. My understanding is that In cases where they have the legal right to add these past due amounts to the property taxes, they will end up super senior to the mortgage and will have to be paid. Otherwise they should be wiped out.