Legal Question in Real Estate Law in California

The HOA can foreclose; the question is would they want to. Absent a very unlikely set of circumstances involving a refinance that went through with a HOA lien already in place, the mortgage will be senior to the lien. There is no difference between the HOA's position and something like a home equity loan that goes on the property sometime after the purchase. Junior creditors of any kind can always foreclose if not paid, but they take subject to the senior debt. Foreclosing does not make the junior creditor directly liable for the debt, but since the senior creditor can always foreclose if not paid, the foreclosing junior must then pay the senior or lose the property. If there is equity above the senior debt, it may make sense to foreclose, but there is little or no reason for a junior creditor to foreclose on a property that is worth less than the senior debt.