Legal Question in Real Estate Law in California

Can an HOA that has a lien on a property, foreclose on the occupant who had once been the buyer but went bankrupt, and is still being allowed to live in the property by the lender, because the occupant and lender are negotiating a new home loan?


Asked on 4/20/12, 4:14 pm

1 Answer from Attorneys
Bryan Whipple Bryan R. R. Whipple, Attorney at Law

A foreclosure would, technically, be a proceeding against the owner, not necessarily the occupant. An HOA holding a lien is among those with the legal power to foreclose.

A lender is not usually the one who decides who can live in a property that's for sale; that is up to the owner; but maybe in this case, the lender has become the owner through a prior foreclosure.

Your question raises several other questions, including whether the HOA was made a party to the bankruptcy, which of your debts were discharged, and what your chances are for getting a new loan. Perhaps you need to discuss the HOA's claims and threats with the lender?

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Answered on 4/20/12, 6:45 pm


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