LA County Information

County of Los Angeles
Department of Consumer Affairs
New Consumer Laws 2007

DCA
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Homeowner Associations: Foreclosures

Civil Code Sections 882.020, 1367.1, 1367.4, 2924;
Code of Civil Procedure Sections 729.040,
729.050, 729.070, 729.080

Last year, changes in the law changed the procedures by which a homeowners association (HOA) can foreclosure on a homeowner's unit by setting both a monetary and time threshold for delinquent assessments. Foreclosures can be done only on properties when delinquent assessments are more than $1,800 or for delinquent assessments of any amount that are more than 12 months delinquent. The law provides that if the amount of delinquent assessments owed is less than $1,800, the HOA can seek recovery in small claims court.

In addition to these provisions, if a homeowner's home is foreclosed upon, the sale is subject to a 90-day redemption period during which the homeowner can recover the property by paying the purchase price of the home plus other fees and costs of the purchaser.

This law establishes the following procedures regarding the right of a homeowner to redeem his or her home that is in non-judicial foreclosure:

  • Provides that the notice of default must be served by personal service on the person whose name is shown as the owner of the property, unless the owner has designated in writing another person as his or her legal representative.
  • Requires that a notice of sale in a non-judicial foreclosure must include a statement that the property is being sold subject to a 90-day right of redemption.
  • Provides that in the administration of redemption in a non-judicial foreclosure, the trustee is entitled to reasonable compensation and costs in the county in which the foreclosure is conducted.
  • Authorizes the trustee to collect the cost of servicing the notice of default or the notice of the decision of the board to foreclose.
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For more information:
County of Los Angeles Department of Consumer Affairs
B-96 Kenneth Hahn Hall of Administration
500 W. Temple Street * Los Angeles, CA 90012-2706
Telephone (800) 593-8222 (within the County) * (213) 974-1452
web site: dca.lacounty.gov