HOA dues and foreclosure in California

You get a notice from your homeowners association saying you are behind on your dues. Maybe it is just a few hundred dollars. You plan to pay next month. But the letter says the HOA can put a lien on your house. You wonder if that is true. It is.

Under California law, the Davis-Stirling Act gives HOAs the power to collect unpaid assessments. When you buy a home in a common interest development, you agree to pay these fees. If you fall behind, the HOA can record a lien against your property. That lien is a public notice that you owe money. It can hurt your credit and make it hard to sell or refinance.

The HOA cannot take your house right away. The law sets a process. For regular assessments, the HOA must give you a notice of intent to lien. You have a certain number of days to pay or ask for a payment plan. If you do not respond, the HOA can record the lien. After that, the HOA dues and foreclosure in California can start a foreclosure. But the rules are different depending on whether the amount is small or large.

If the debt is under a certain amount, the HOA may be able to foreclose using a quick process called judicial foreclosure. If the debt is larger, the HOA usually has to go through the same type of foreclosure as a mortgage lender. That takes longer and costs more. In some cases, the HOA has to go to court. In others, it can use a trustee sale.

The Davis-Stirling Act also requires the HOA to offer you a payment plan before it can record a lien. You have the right to ask for one. The plan must be reasonable. But you have to ask for it. If you ignore the notices, the HOA can move ahead.

You also have ways to fight back. You can dispute the amount if you think it is wrong. You can ask for a hearing with the HOA board. If you have a disability, you can ask for a reasonable accommodation. You can also talk to a lawyer who knows HOA law. A housing counselor approved by HUD can help you understand your options. So can a CPA if your finances are a mess.

The rules are not simple. They depend on your specific situation. How much you owe. Whether the HOA followed the rules. Whether you asked for help in time. Some HOAs are aggressive. Some are not. Do not assume the worst, but do not assume it will go away either.

If you get a notice, open it. Call the HOA or the management company. Ask for a payment plan. Write down what they say. Keep copies of everything. And if you cannot pay, get help before things get to a lien or foreclosure. A few months of missed dues can turn into a legal problem that takes years to fix.

A closer look is at HOA dues and foreclosure in California.