Pacific Association Collections - PAC
Notice of Default (NOD)
The non-judicial foreclosure of an assessment lien must be conducted in accordance with the procedural requirements set forth in Civil Code Sections 2924,2924b, and 2924c applicable to the exercise of powers of sale in mortgages and deeds of trust. [Civil Code Section 5710(a).] One of those procedural requirements involves the recording of a Notice of Default (NOD) in the office of the county recorder where the property subject to the assessment lien is located ("Subject Property') [Civil Code Section 2924(a)(1).].
Contents of Notice of Default
The required contents of a Notice of Default includes, the address of the Subject Property, a statement that the owner of the Subject Property has breached his or her obligation to pay assessments to the association, and a statement that the association has elected to sell the property via a non-judicial foreclosure action. [Civil Code Section 2924(a)(1)]. The Notice of Default must also begin with the statement required under Civil Code Section 2924c(b) which informs the owner of the following:
- The potential for the Subject Property to be sold without court action;
- The owner's right to stop the non-judicial foreclosure action by paying the amounts owed; and
- The potential for the owner to lose his or her legal rights if he or she does not take prompt action. [see Civil Code Section 2924c(b).].
Serving the Notice of Default
The association must serve the Notice of Default on the owners in accordance with the manner of service of summons in Article 3 [commencing with Section 415.10] of Chapter 4 of Part 2 of the Code of Civil Procedure. [Civil Code Section 5710(b).], the service requirements applicable to the filing of lawsuits. Also within certain timeframes, a copy of the Notice of Default must be mailed to specified persons having a legal interest in the Subject Property or otherwise having a right to be provided with a copy of the Notice of Default. [Civil Code Section 2924(b)-(c)].
Decision of Board to Initiate Foreclosure
Prior to recording the Notice of Default, the owner must be provided with notice of the board's decision to initiate a non-judicial foreclosure. [Civil Code Section 5705(d)].
Pacific Association Collections