Non-Judicial Foreclosure

Some Facts.

Foreclosure is never the goal, however, is sometimes a necessity if the homeowner is not willing or unable to pay their assessments. Our goal is to collect any delinquent assessments, late fees, accrued interest and collection fees in a timely fashion while working with all parties in a respectful courteous way to resolve the matter. Board approved payment plans are closely monitored to help cure delinquent assessments as quickly as possible.

Letter/Notice of Intent to Lien

Immediately after a homeowner is referred to our office for collections, we issue a Notice of Intent to Lien via certified mail with a tracking number so we can confirm that the notice was delivered.  This informs the delinquent homeowner that they have 30 days to settle the delinquency and prevent a lien from being recorded against their property.  We also provide a copy of the association’s collection policy and a ledger detailing all of the owner’s charges and payments.  That is the first step in the non-judicial foreclosure process.

Lien Recordation

At the end of the 30 day period the board of directors is provided with a lien authorization letter.  California law requires the board to meet in an open session, identifying the owner by assessor’s parcel number, in order to approve recordation of the lien.

Notice of Default

If the homeowner is delinquent either over one year or the assessments exceed $1,800, 30 days from the recording of the lien should the delinquent assessments and fees not be paid, CHCS will record a Notice of Default. This notice informs the homeowner they have 90 days to satisfy the lien. A “Trustee Sale Guarantee” is issued to see that all affected parties with an interest in the property are informed of the notice.

Notice of Sale (Foreclosure)

90 days after the Notice of Default with the board’s approval, a foreclosure sale is reported and held after a 25 day notice. Delinquencies are paid to the association from the sale of the property, however, if the property is not sold the property ownership then goes to the association. We will work with all parties involved to avoid this step. The owner(s) has 90 days to redeem the property after the sale by making full payment.