One of our condo clients asked: I’m on the board of my Homeowner’s Association and heard there’s a new law about notifying the HOA of a foreclosure sale on a unit. Is that true?
Yes – it is true. Here’s what CAR (California Association of Realtors) has to say:
Senate Bill 1511, which amended Civil Code Section 2924b, effective January 1, 2009, permits HOAs to record a request that a trustee, or any person authorized to record a notice of default regarding any of the separate interests governed by the HOA, mail to the HOA a copy of a trustee’s deed (on any unit) within 15 business days after recordation of the trustee’s deed.
The request by the HOA must include the legal description or the assessor’s parcel number of the separate interest as well as the name and address of the association and a statement that it is an HOA. The request must be recorded before the filing of a notice of default. Note that failure of the mortgagee/lender/trustee to mail a copy of the trustee’s deed to the HOA does not affect title to the real property.
