My HOA foreclosed on my house for past due fees. The 90 day redemption period has almost expired. A friend who buys foreclosed homes told me that even after the redemption expires, the HOA cannot take adverse possession of the home and throw me out since I have a negative equity first trust deed loan ahead of their foreclosure. The HOA can only continue to hold a lien payable when the mortgage is paid off, refinances, or sold. Is this accurate in California ?
2 Answers from Attorneys
No. Once your HOA forecloses, they own the property. Your occupancy rights are entirely extinguished. Your debt status is irrelevant.
In the eyes of the law, once the redemption period expires you are exactly the same as a renter whose lease has expired and has refused to move while also no longer paying rent. The HOA can't just change the locks or board up the door. They must evict you the same as the tenant who refuses to move. But you have no defense to that eviction and once they follow the legal procedures and make the appropriate arrangements, the sheriff will show up and put you and your possessions on the street if you have not moved before then.
1. What the other lawyer said. I can't tell you the number of people who've lost their houses/cars/jobs, etc., because of something a friend, cousin or fellow bus rider told them.
2. Don't let 'a friend' who works on the back-end of a process, explain to you how the front end works.
3. Don't risk your property on the word of a person in another industry, with whom you have no contract & who owes you no fiduciary duty. When the Sheriff shows up - what will you say -" my friend said you couldn't take my house?"
4. Property ownership is important enough to check several sources - preferably professionals.
5. The first solution that comes to mind is a bankruptcy. No, don't listen to your non-bankruptcy attorney friend, cousin, co-worker about this either. Call a BK attorney.
Also, when appropriate (like, before you lose your house), don't be afraid to pay for quality advice from someone trained to provide advice in the area you need advice!
Rant off- my apologies. I'm just frustrated. People are either losing their property because of bad advice or their unwillingness to pay 1, 5% or 10% of their property value to pay someone to save said property.
A guy told me he lost his 1.5 mil house, because his lawyer tried to charge him 20,000 to save it. SMH