Legal Question in Real Estate Law in California

This is an HOA-related question: I'm on the Board, not satisfied with our paid Mgmt. Co's advise to do nothing in these 2 cases of delinquency, I'm concerned it's not fair to other homeowners who are doing their best to pay dues and shows selective enforcement: 1) Owner A is about $20K/ 5 years delinquent, has no likely resources to ever pay and promises grandiose nonsense, however, he also owes a bank which may foreclose any time: Mgmt. Co. says in that case, we'll get nothing anyway, and even if we foreclose non-judicially which our Board voted to do, 7 mos. ago, the bank still has priority, so she advises doing nothing; I just learned her reasoning on this after 7 mos. of dodging the issue;

2) Owners B asked for and got a payment plan from us this April, but we learned they filed for BK later, don't know if they followed through, however house was sold in a Short Sale 2-3 weeks ago, is closing any time, did we miss our chance to get paid? They're about 5-6 mos. overdue at least. Can we do something before sale closes? Can our filing for a lien/ non-judicial foreclosure, stop buyer from getting clean title until we're paid?


Asked on 12/02/17, 2:49 pm

1 Answer from Attorneys

Fred Valentine Law Offices of Fred L. Valentine

Management company must act in a timely manner upon Board's direction. You need to read your contract send firm written direction and tell them they will be held liable for consequential damages on inaction. You must file an action and lis pendens for both properties. Did you get notice of BK to discharge fees? You are running out of time to act.

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Answered on 12/02/17, 6:51 pm

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