Trustee's sale initiated by the HOA


#1

I have a question regarding a trustee’s sale initiated by the HOA and it is

junior to other Trust Deed. If I bid in the trustee’s sale and win:

  1. Do I get Trustee’s Deed immediately?
  2. Is there a redemption period for the previous owner?
  3. When Can I get possession of the property?

#2

A HOA can foreclose on a property just like a lender. You would get the trustees deed like any other sale and as long as it was recorded within 15 days of the sale it would be effective the date of the trustee sale. The big difference with a foreclosure on a HOA lien is that there is a 90 day Right of Redemption in CA. Although you could give the appropriate notice to the occupant to take possession or start the eviction process most investors would tell you to wait until the 90 days are up before you push the issue. If the property is vacant you would be able to take immediate possession of the property like any other sale. YOu can read more about the CA foreclosure laws by going to http://www.foreclosureradar.com/ca-foreclosure-law


#3

My HOA aquired my deed on 15 Sept 11. I wrote letters to the board asking to be put back on the payment plan I was on before my sister died (I had to use the money I was paying them to take care of some of her bills afterward). I wrote them time and again asking to do this and they ignored every letter.
Then on 10 Aug 12 they served me with evicition papers and even took it to court where I lost as the judge did not want to see any of the documentaion that I had showing that I had attempted to repay my past due HOA fees. Now I am being evicted. I am on disability, and have no way to get into a rental because of my credit. Is there ANYTHING I can do?


#4
  1. What is the balance of the mortgage? 2. What is the value of the unit? 3. What did you owe the HOA? 4. Why didn’t you sell the property during the 90 redemption period? 5. Why did you pay bills for a 3rd party you weren’t obligated to pay rather than pay your own bills? 6. Did you file a bankruptcy during this process? My guess is you owed more on the property than it was worth.

#5

The mortgage is about $184,000 and I am upside down in it. By the time I had set up a payment plan with the HOA I owed about $4,500 (including late fees and admin fees, etc. The HOA did not start to acutually get me out of here until 10 Aug 12, and even before that time I had written letters to get back on the payment plan again after my sister died in 2011, long before they acquired the deed and also afterward but they ignored all of my letters. Some of the 3rd party bills I had to pay such as my sister’s health insurance premium for the last month when she died or I would have lost my health insurance.

And, no, I did not file a bankruptcy at any time because I didn’t know that the $45,000 that she wanted left to me in trust to pay off my fees and pay my mortgage fees was going to be stolen from me by her “best friend” that she trusted to do so, instead of putting it in writing. Had I known that curveball was going to hit, I would have paid off my dues with the $5,000 I got straight away and worried about the other things later. Sadly, I only found out about this woman doing what she did the day before the Trustee Sale.


#6

Unfortunately - you are better off walking from the unit. There is nothing left for you to save. Even if you had all the cash in the world, it makes no sense to keep paying on a property that is upside down.
Take the money you were going to offer the HOA and move. The HOA is going to take a huge hit when the bank finally decides to take over the property.

How far behind are the bank payments?
Have they started fcl.?
Oh - I have assumed you are in Ca.


#7

I would walk away with it except that I have no money to put down on a rental, I am disabled so I will have to hire someone to move me.

The HOA isn’t going to get anything out of this because they are the junior lender and right now my lender is processing a loan modification but since the deed is not in my name it is a problem. I am just wanting to find out if I can buy more time past this Sunday to get out of here so that I can save up for a rental, etc.


#8

And yes, I am in California.


#9

A bankruptcy would buy you a little time. Have you been served with papers from the Sheriff giving you an exact eviction date?


#10

No papers from the sheriff but their was a court hearing and the judge ordered the eviction. He didn’t want to hear anything I had to say and that I had been trying to get back onto my payment plan since right after my sister died in May 2011. The HOA ignored all of my letters and they just showed up on 10 Nov 12 to evict me for real this time. I had been given that 3 day notice to vacate two other times, and each time I asked if I could start paying them back and also pay my current monthly dues, but they ignored it all.


#11

Before the Sheriff physically removes you from the property, they serve you with a notice they are coming. I think they give you at least 5 days notice - but could be wrong about the timing.
I don’t know what a bk. could do for you at this point. My guess is 4 to 6 weeks since you have an aggressive creditor willing to spend money they will lose when the lender takes over the property. I don’t think it would be worth paying an atty to buy even 2 months w. a bk.
BTW - you said the lender was (theoretically) in process of attempting a workout agreement. Have they started their own foreclosure proceedings, yet?
You might want to look at your Court file to see if the HOA creditor has obtained a “writ for possession”. They then would deliver that to the Sheriff who would do the “physical removal” if you are still there. In some counties the Sheriff is running 3-6 weeks behind, in others they can complete the eviction in less than 2 weeks. You could call the Sheriff’s office and ask “If I bring in a writ for possession tomorrow, when would the eviction take place?”
All that info would at least tell you about when your last day of occupancy would be.