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I have condo in California. HOA just filed trustee sale notice. Will they able to foreclose my condo where there is no equity?

Los Angeles, CA |

I owe HOA about $30K. There is first mortgage $330K and second mortgage at $80K. The condo is worth about $250K. Can HOA foreclose my condo, and if they can, what happens to the ownership of the condo and first and second mortgage. I am current on the first mortgage and behind on second mortgage.

Attorney Answers 3


  1. Yes, they can foreclose, but I do not see why they would want to. They would take title subject to the existing debts which you say are more than the value. They would be better off simply suing you for the amount you owe and getting a personal judgment.


  2. If I understand your facts correctly, the HOA is going to foreclose on its HOA lien for your non-payment of HOA dues, and neither the first nor the second are foreclosing? In other words, the HOA has recorded a Notice of Default and Election to Sell?

    The HOA can certainly foreclose, but it will (after the 90 day statutory redemption period) become the owner of the condo, subject to the first and possibly the second (depending upon when you obtained the second). That means the HOA has to pay the mortgage(s) or else the HOA will be foreclosed upon.

    Frank W. Chen is licensed to practice law in the State of California. The information presented here is general in nature and is not intended, nor should be construed, as legal advice. This posting does not create any attorney-client relationship with the author. For specific advice about your particular situation, consult your own attorney.


  3. Yes, my colleague is correct that the HOA can foreclose through an assesment lien. A trustee sale is a private auction of sorts where your condo will be sold to the highest bidder. The HOA will be paid and the buyer will take the property subject to the mortgages. I believe you will be paid the difference between the HOA lien and the purchase price. Ownership will belong to the highest bidder.

    I can't see anyone purchasing a property this far under water however which makes the HOA's decision to file a trustee sale a bit confusing.

    Legal disclaimer: This reply is provided for information purposes only and does not represent legal advice or an attorney-client relationship.

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