It is highly unusual for an assessment lien foreclosure to proceed to sale. If it does, the bidding on a property at a foreclosure sale will usually open at the amount owed to the foreclosing creditor. This means that if the HOA is owed $10,000, and there is a $300,000 senior lien (deed of trust), the opening bid by the association will be $10,000. The successful bidder takes title "subject to" the senior lien.

Any third party bidder at the foreclosure sale must bring cash or cashier's checks in order to bid. If you intend to offer a bid at a foreclosure sale, you must present cashier's checks or cash in an amount in excess of the opening bid. The HOA is not required to bring cash or cashier's checks to bid at the sale. As the foreclosing creditor, the association has a "credit bid" for the amount it is owed.

The HOA's sale is concluded when the property is sold to the highest bidder. Whether the HOA or a third party purchaser acquires the property, the title is still subject to the owner's 90-day Right of Redemption.

Notice of Default

Senior Liens - Foreclosure