Legal Question in Real Estate Law in California
Foreclosure with lawsuit
More than 2/3 of the condo owners want to elect a new Association President. The current President tried her best to collect special assessment on all units (more than 5K for each unit) without show us any contractual agreement or breakdown of the project expenses. The association has no reserve. We received Pre Lien Notice the the board (payment should be made before May 11, 2002).
The previous President is hiring attorney to sue current board President for threatening him. What will happen if we do not pay the assessment? Apparently we will not have right to vote for the new President in the coming meeting which the current President postpone to July 23, 2002.
Questions below:
1. Can the association board foreclose our property even they are in lawsuit?
2. Could the current board President use the funds in the association for the lawsuit.
3. Worse come to worse, is the liability extend to the owners' other personal or real property if foreclosure the subject property is not enough to cover the expenses of the lawsuit.
4. What will be the best interest to the association?
Thank you for answer the questions!
With Regards
Norman
3 Answers from Attorneys
Re: Foreclosure with lawsuit
It sounds as if the disaffected homeowners should hire a litigation attorney to represent their interests.
Joel Selik
800-894-2889
www.4TheLaw.Com
Re: Foreclosure with lawsuit
The board has to abide by the bylaws of the association. Failure to do so could result in liability to the other owners.
It would seem that they would need to justify 1)what the assessment is for and 2)document the exact costs.
The homeowners should get a restraining order blocking the assessment until such time as is is justifies according to the bylaws.
Re: Foreclosure with lawsuit
Generally, an Association can file either a judicial or non-judicial foreclosure action even if there is a pending lawsuit, unless there is an injunction for such an action. My firm represents over 600 Associations so I would like to speak with you in order to determine if I do not have a conflict of interest for more specific information. My phone number is 714 363 0220.
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