Legal Question in Real Estate Law in California

Foreclosure Rental w/ Taxes & HOA owed

In 2005 we bot a 2nd home $520k adj int only to rent out. Its vacant now & in forclosure. Trustees Sale will occur 06-09-08. Pror taxes aprox $7K & $3k HOA fees are owed in arrears. We also owe a licensed contractor $10k for repairs on that prop. What are we liable for? Can the contractor place a mech lien? Should we suggest that they do? Will the taxes or HOA fees be a judgement against us or will they be ''settled'' in the foreclosure? There was both a 1st and 2nd mtg on this prop, only the 1st ($430K)is forclosing, no communication at all from the 2nd - not even late due bills. What recourse will/do that 2nd mtg company have against us for what is owed to them ($100k)?


Asked on 5/30/08, 10:42 pm

3 Answers from Attorneys
Bryan Whipple Bryan R. R. Whipple, Attorney at Law

Re: Foreclosure Rental w/ Taxes & HOA owed

The foreclosure will take care of the first (no deficiency judgment with a trustee sale) and probably the taxes. Not sure about the HOA fees; depends on whether they are a lien of record, if so, where in the pecking order, and results of the sale. Also, the results of the sale may affect the amount owned on the 2nd; depends on the results, but very likely the 2nd won't get a dime and will become a "sold out junior," able to sue you as an unsecured creditor.

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Answered on 5/31/08, 1:36 am
OCEAN BEACH ASSOCIATES OCEAN BEACH ASSOCIATES

Re: Foreclosure Rental w/ Taxes & HOA owed

You will be liable on the second unless it was held by the original seller of the property. Contact me directly.

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Answered on 5/31/08, 1:53 pm
Mitchell Roth MW Roth, Professional Law Corporation

Re: Foreclosure Rental w/ Taxes & HOA owed

Call me monday morning and we can likely stop the process and may be able to save the house.

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Answered on 5/31/08, 9:10 pm


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