Can Your HOA Really Take Your Home?
Yes, HOAs Can Foreclose in California
But it's a long process with many protections for homeowners. If you're behind on HOA dues, here's what you need to know to protect yourself.
It shocks many California homeowners to learn that their HOA can foreclose on their home - even if their mortgage is completely paid off. But before you panic, understand that HOA foreclosure is a lengthy process with significant legal protections for you.
When Can an HOA Foreclose in California?
Under California Civil Code Section 5700, an HOA can only pursue foreclosure if your delinquent regular assessments (NOT including late fees, interest, or collection costs) either exceed $1,800 or have been delinquent for more than 12 months. Both thresholds are high bars that give you time to act.
The HOA Foreclosure Timeline
From Missed Payment to Foreclosure Sale
Late fees begin accruing. HOA may send reminder notices.
HOA must send itemized statement of amounts owed and notify you of your right to request a payment plan and alternative dispute resolution.
If you don't respond or can't reach agreement, HOA can record a lien against your property.
HOA must wait at least 30 days after recording lien before starting foreclosure. Then they must record Notice of Default.
You have at least 90 days to pay the full amount owed (including fees and costs) to stop the foreclosure.
After reinstatement period, HOA can schedule auction with at least 21 days notice.
Total timeline: Typically 6-12 months minimum from first missed payment to foreclosure sale. This gives you time to find a solution.
Your Rights Under California Law
Right to Payment Plan
Before recording a lien, the HOA MUST offer you the opportunity to request a payment plan that spreads your balance over at least 12 months.
Right to Dispute Resolution
You can request mediation or other alternative dispute resolution (ADR) before the HOA can proceed with foreclosure.
Right to Detailed Statement
You must receive an itemized statement breaking down exactly what you owe - assessments, late fees, interest, and collection costs.
Right to Reinstate
You can stop the foreclosure at any time before the sale by paying all amounts owed plus fees and costs.
Special Protection for Seniors and Disabled Homeowners
California law requires HOAs to consider hardship circumstances. If you're a senior or disabled person facing HOA foreclosure, you may have additional protections. Document your circumstances and communicate them to the HOA board in writing.
How to Stop HOA Foreclosure
Every notice triggers deadlines and rights. Respond in writing. Keep copies of everything.
In writing, request a payment plan. The HOA must offer at least 12 months. Get any agreement in writing.
Before they can proceed with foreclosure, request alternative dispute resolution. This buys time and may lead to a better outcome.
HOAs often make procedural errors. Were all required notices sent? Were proper waiting periods observed? Errors can void the foreclosure.
Filing bankruptcy immediately stops HOA foreclosure. Chapter 13 lets you catch up over 3-5 years while keeping your home.
What About Your Mortgage?
If you have a mortgage and are behind on HOA dues, the situation is complex:
- Most mortgage liens have priority over HOA liens (they were recorded first)
- If the mortgage lender forecloses first, the HOA lien is typically wiped out
- If the HOA forecloses first, the new owner takes the property subject to the mortgage
- Your mortgage lender may pay delinquent HOA dues to protect their interest (and add it to your loan)
Warning: Super Lien Provisions
California gives HOAs a limited "super lien" for up to 12 months of assessments. This portion can have priority over some mortgages in certain circumstances. The rules are complex - if you're facing this situation, consult with an attorney.
Negotiating with Your HOA
Remember: HOAs don't actually want to foreclose. Foreclosure is expensive, time-consuming, and creates problems for the community. Most boards would rather work something out.
Tips for Negotiating:
- Request a meeting with the board (not just the management company)
- Explain your hardship circumstances honestly
- Propose a specific payment plan you can actually afford
- Ask them to waive late fees and interest as part of any agreement
- Get EVERYTHING in writing
- Make payments on time if you reach an agreement - one missed payment can restart the process
When to Get Legal Help
Consider consulting an attorney if:
- You've received a Notice of Default
- You believe proper procedures weren't followed
- The HOA won't negotiate reasonably
- You're also behind on your mortgage
- You're considering bankruptcy
- The amounts seem wrong or include improper charges
Need Help With Your HOA Situation?
Whether you're trying to negotiate with your HOA, considering selling to escape the situation, or need to understand all your options - we can help.
Call (949) 565-5285Free, confidential consultation
Key Takeaways
- Yes, California HOAs can foreclose - but it takes 6-12+ months
- You have strong rights including payment plans and dispute resolution
- The threshold is $1,800 in assessments OR 12 months delinquent
- Don't ignore notices - respond in writing to protect your rights
- HOAs usually prefer to work out payment plans over foreclosure
- Bankruptcy can stop HOA foreclosure immediately if needed
- If procedures weren't followed properly, the foreclosure may be voidable
You have more time and more options than you think. But the sooner you act, the better your options will be.