One of the issues many homeowners associations are dealing with in light of the recent rise in foreclosure is not knowing when a bank takes over ownership of a property following foreclosure.Â Without this information, associations often go months without knowing who is liable for the payment of monthly assessments, and where to send monthly assessment bills.
The California legislature provided some limited assistance to California homeowners associations earlier this year when it amended Civil Code Section 2924b(f) to permit homeowners associations in California to record a document requesting a copy of a Trustee’s Deed Upon Sale recorded by anyone authorized to record a Notice of Default against real property. Once an HOA records the request, a lender is supposed to provide notice to the address contained in the request within 15 days after recording the deed.
While an association that files the proper form may receive earlier of a bank having taken over a property, unfortunately no penalties for not providing the required notice to the association. Nevertheless, homeowners associations in California should avial themselves of this relatively cost effective option to improve the likelihood they will receive timely notice when a bank takes over a property within the development.