Do Mello Roos survive Trustee's Sale?

Does mello roos survive Trustee’s Sale?

Hi Mark,
Yes, Mello Roos is senior to most Deeds of Trust.

Back to Mello Roos (in California), Mello Roos bond indebtedness is included on a property tax bill. Since they are on the property tax bill, they are senior. So, you just need to worry if there are back taxes due on the property becausethese are included in that debt. Unless there is some strange County in California that does not put it onto the property tax bill, in which case you will have to find out if a separate bill is issued and what the status is of the payments. Wed Oct 26th 2011 at 3:04pm

No strange counties. To the best of my knowledge Mello Roos should always be assumed to be senior, but as you noted they are included in property taxes, so nothing special is really required to track them. When I see property taxes that are substantially more than 1% of value, I usually assume there are Mello Roos, and I adjust price accordingly (or at least make sure all my comps have Mello Roos too). Sean Wed Oct 26th 2011 at 10:20pm