Legal Question in Real Estate Law in California

Urgent - HOA auction/foreclosure

Our home is scheduled for auction tomorrow 2/11/13 by the HOA for back dues of $17k

I understand that there may be a 90 day redemption period to pay the trustee.

If this is true, I have a few questions:

1. Are we allowed to stay in our home during this 90 day redemption period (no eviction)?

2. If we come up with funds, do we pay the trustee the amount of the auction starting bid or do we pay the third party who won/bid?

3. What if we have a renter in the property?

Thank you


Asked on 2/10/13, 6:45 pm

1 Answer from Attorneys

Anthony Roach Law Office of Anthony A. Roach

Sorry for the delay in answering as I was out all day, but other people read these so I will answer here.

If the association sells the property via a nonjudicial foreclosure (which mirrors a trustee's saleunder a deed of trust) the highest bidder takes ownership subject to a 90-day right of redemption. A judicial foreclosure is different, and may have a longer redemption period. The redemption period allows the foreclosed owner to "redeem" the property by paying the delinquent amounts plus any collection fees and costs. (Code Civ. Proc., � 729.035, Civil Code, � 1367.4(c)(4).)

In the event the buyer of the foreclosed property incurs expenses for maintenance and repair work on the unit which were reasonably necessary for the preservation of the property, he can include those expenses in the redemption price. (Barry v. OC Residential Properties (2011) 194 Cal.App.4th 861.)

During the 90-day redemption period title to the property does not transfer to the highest bidder. Instead, the trustee records a "certificate of sale" which gives notice of the bidder's right to the property. If the delinquent owner does not redeem the property within the 90-day period, title is recorded and ownership transfers to the buyer.

Because the highest bidder does not officially own the property until redemption period ends, the bidder does not have a right of possession and cannot evict the owner from the property during the redemption period. Once the redemption period is over and title transfers, the buyer can evict anyone who might be in possession of the property by means of an unlawful detainer action.

The buyer of foreclosed property has the right to collect rents and profits from persons in possession of the property. (Code Civ. Proc., �729.090.)

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Answered on 2/11/13, 8:43 pm


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