Pacific Association Collections - PAC

Timeline of Non-Judicial Foreclosure Process

This is a summary only and should not be relied upon for legal advice.

  • PAC is notified when a homeowner becomes delinquent in paying their assessments.

 

  • The HOA starts the process by retaining PAC.

 

  • PAC verifies legal ownership and the status of title.

 

  • A Pre-lien Notice (Lien Warning Letter) is sent to all record owners by regular and certified mail.

 

  • A thirty day statutory period begins to run.

 

  • The process continues unless an owner demands IDR, ADR, disputes the debt, or files for bankruptcy.

 

  • The board must vote in open session at a board meeting to authorize the recording of a lien. The decision must be recorded in the minutes.

 

  • The lien is prepared and recorded after the conclusion of the first thirty day statutory period.

 

  • The second thirty day statutory period begins to run upon the recording of the lien.

 

  • A copy of the recorded lien is sent to every owner of record by regular and certified mail within 10 days of the recording date.

 

  • The process continues unless an owner demands IDR, ADR, disputes the debt, or files for bankruptcy.

 

  • The board must vote in executive session of a board meeting to authorize the foreclosure of a property. The decision must be recorded in the minutes and the decision to foreclose must be personally served on the owners if owner occupied.

 

  • The process continues unless an owner demands IDR, ADR, disputes the debt, or files for bankruptcy.

 

  • A seven day Intent to Foreclose Notice is sent to the delinquent owner before a foreclosure is started.

 

  • A Notice of Default (NOD) is prepared and recorded after the seven day warning and after PAC obtains a Trustee's Sale Guarantee (TSG). A copy of the recorded document is sent to every owner of record by regular and certified mail within 10 days of the recording date.

 

  • A statutory three month waiting period begins.

 

  • A copy of the Notice of Sale is sent to all interested parties that have requested notice by certified mail.

 

  • A Notice of Sale is prepared, posted on the property, and recorded. A copy of the recorded document is then mailed to every owner of record by regular and certified mail at least 20 days before the sale date. The sale date cannot be earlier than three months and 20 days after recording the NOD. A TSG update is obtained.

 

  • The process continues unless an owner demands IDR, ADR, disputes the debt, or files for bankruptcy.

 

  • Assuming the assessments owing are $1,800 or more, or more than 12 months delinquent, the property is sold to the highest bidder or reverts to the HOA to satisfy delinquent assessments and the cost of collection. The trustee prepares and records the required documents.

 

  • In the extremely unlikely event that an HOA acquires a property by foreclosure, PAC can arrange the short term management and sale of the individual unit for the HOA.

 

  • A 90 day Right of Redemption runs from the date of the trustee's sale.

 

Pacific Association Collections
Pacific-AssociationCollections.com
818-991-5200