Legal Question in Real Estate Law in California
H.O.A. Dues
I had to foreclose on a condo two years ago. I am now being sued by my former H.O.A. for unpaid dues during the foreclosure process. My broker told me that I was not responsible because the H.O.A. would take 3rd lien position. Am I now responsible to pay?
2 Answers from Attorneys
Re: H.O.A. Dues
Your use of the expression "I had to foreclose on...." is a bit confusing. The person doing the foreclosing is the lender, not the borrower, and I assume from the rest of your message that you were the borrower.
If that's correct, the foreclosure of your first or second deed of trust would wipe out the collateral of junior lien holders, and if they weren't paid off, they became unsecured junior creditors. Yes, they can sue you - the antideficiency laws only apply to secured creditors, not to creditors that became unsecured through no fault of their own. You are responsible to pay.
Re: H.O.A. Dues
Yes, you are responsible for the unpaid dues.
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