Legal Question in Real Estate Law in California

What the collections company tells you is bascially true. The only way the debt will not follow you is if the HOA forecloses and the condo sells for as much or more than your mortgage plus the HOA's entire claim. HOA liens are not like mortgages where if the lender non-judicially forecloses they cannot seek a deficiency. HOA liens are just one way of collecting the debt. Also, if the lender forecloses, the HOA lien will be wiped out, because it is junior to the mortgage. In that case the HOA debt is like any other and they will sue you for it, and then collect on the judgment by executing against bank accounts and garnishing wages.

I agree with Mr. McCormick, and would add that whether and how vigorously the HOA or its collection agency will pursue collection after a foreclosure that didn't pay it off is an unknown. More likely than not, they would make some attempt to obtain and enforce a judgment, maybe in Small Claims Court, but for $2,500 it is by no means a certainty; they might just write it off, especially if you don't seem to have a regular job or other assets such as bank accounts, real estate, etc.