Homeowner's Associations

C&H Trust Deed Service offers a complete range of collection services for Homeowner's Associations throughout California.  While our service includes placing the delinquent homeowner in foreclosure, we understand that this is an uncomfortable situation for the board members and the homeowner themselves.  As such, we act as an intermediary in discussing the account with the homeowner and endeavor to amicably resolve the account.  

In our experience, very few properties are actually sold through the foreclosure process based on an HOA delinquency.  Instead, the vast majority of homeowners request payment plans (which we negotiate on your behalf based on your instructions), refinance or sell their property.  If, however, the homeowner simply refuses to pay there really is no option other than foreclosure. 

The basic timeline for such a procedure is as follows:

• Assessments become delinquent for more than $1,800 or longer than 12 months;
  
• Owner receives from the board or managing agent one or more notices of delinquency pursuant to the Association’s collection policy;
  
• Majority of the Board votes to initiate foreclosure and the vote is recorded in the minutes;
  
• File is referred to C&H Trust Deed Service;
  
• A final demand and Notice of Intent to Lien is issued;
  
• After 30 days, a Notice of Delinquent Assessment (Lien) is recorded and a copy sent to the owner;
  
• After 30 more days, a Notice of Default is recorded and sent to the property owner;
  
• After 90 days, a Notice of Trustee's Sale is recorded and sent to the property owner;
  
• After 27 days, the property is sold to the highest bidder or reverts to association to satisfy delinquent assessments and costs of collection.
• The property owner then has a 90 day right of redemption during which they can reclaim title to the property by paying all delinquent assessments, foreclosure fees, advances and interest.

As you can see, the California statute allows the property owner ample time to resolve the delinquency.  While foreclosure is not our objective, if the homeowner will not pay, it is inevitable.