Is California a "Super Lien State"


#1

What happens to an HOA Lien if the property is foreclosed? Is the new buyer responsible for the past HOA? Does the Lien get “Wiped off at Foreclosure”


#2

My understanding is that California is not a super lien state, and as such the HOA’s lien is NOT superior to the loan in foreclosure unless it was recorded first (naturally senior). So yes, the lien does get wiped off the property at foreclosure. I see no reason why the HOA would not be entitled to continue to seek payment from the former owner. Here is an interesting article on the subject: http://www.communityassociations.net/cacondoguru/archives/2008/05/is_there_a_stra.html


#3

What happens to an HOA lien in the case of a short sale?? If the bank says they will do the short sale but not pay off the HOA lien, Can the new buyer be forced to pay it off in order to close escrow?


#4

Someone has to pay it. Either the seller or the buyer. If it isn’t paid in escrow then yes, the buyer would be forced to pay.