Legal Question in Real Estate Law in California

we live in California in a condo. The HOA is foreclosing for unpaid assessments going back to 2012. The only loan on the property is a HELOC from 2007. Can you explain how to determine the priority of the liens and what will happen after the HOA foreclosure sale. Thank you


Asked on 8/28/14, 4:39 pm

2 Answers from Attorneys

Priority of liens is simple in this case and most cases - whoever records the lien earliest has first priority, and priority descends in chronological order after that. So the HOA (or other buyer at foreclosure) would take subject to the HELOC. The HOA or whomever buys the unit will have to pay the HELOC or face their own foreclosure.

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Answered on 8/28/14, 5:21 pm
William Christian Rodi Pollock

After the foreclosure sale, you wil no longer own the property. If you don't want that to happen, refi and pay off the HOA. In a foreclosure sale someone buys the property and now owns it, the HOA is paid from the sale proceeds and the new owner is responsible for the HELOC. You may or may not still be obligated personally on the HELOC.

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Answered on 8/28/14, 5:33 pm


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