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KimberlyLaw, Attorney and Real Estate Broker
Category: Real Estate Law
Satisfied Customers: 4219
Experience:  13 years of experience in real estate law: Foreclosures, Landlord-Tenant, Condo/Coop, Property Law, Deeds, Purchases/Sales, Estates.
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California My HOA sold our house at auction back to themselves

Customer Question

My HOA sold our house at auction back to themselves and recorded title 7-15. I understand I have a 90 day redemption period only in CA. My first mortgage has a sale date of 9-21, can I be foreclosed on twice in less than 3 months? Shouldn't the first give notice to the HOA they are foreclosing? If the house sells to anyone on 9-21 or back to the 1st, and I redeem the house by paying what the HOA paid at the first auction (I have until 10-5 under CA 90 day redemption law), what would happen to the first mortgage sale, does it become undone? Do they have to refile anything?
Submitted: 6 years ago.
Category: Real Estate Law
Expert:  KimberlyLaw replied 6 years ago.
Hello, I am happy to assist you today.

You are confused here. If the HOA foreclosed on the house, the house is already sold and your mortgages no longer exist. So those foreclosure sales by the banks will not happen. The HOA gets the money for the sale, pays the banks their mortgages, and then pays themselves for whatever is owed to them if there is something left.

So now there is a new owner of your home. There will be no more foreclosures and your mortgages no longer exist, although there could be a deficiency in the event that there wasn't enough money to pay off your mortgages.

You should call the lawyers for the banks and ask them what the final accounting was after the HOA foreclosure sale.

Take care,
Expert:  KimberlyLaw replied 6 years ago.
Hello. If you have any follow up questions, please click "REPLY".

If not, please click "ACCEPT" to close out this question so that I get credit for my work with you.

Take care,
Customer: replied 6 years ago.

Ok I understand that the mortgages are not there, but the first can foreclose on the deed of trust correct? What about my 90 day redemption, what if I redeem after the sale date on 9-19?

Expert:  KimberlyLaw replied 6 years ago.
No, the mortgages no longer exist, so neither bank has a right to foreclose now. The foreclosure already happened. It can only happen once, and then all the lien holders get paid in order.

You do stil have the right to redeem but you would need to be able to pay all the money that you were behind plus all legal fees, etc.
Customer: replied 6 years ago.
If the bank doesnt have a right to foreclose on the deed of trust then why did they send me notice of trustee sale, set a date for the sale 9-19 and record this in the OC clerk recorders office? The HOA already foreclosed and recorded title in the OC clerk recorder on 7-17 but has to wait 90 days from sale date in CA to give the owner a chance to redeem for the amount bid at auction, not for the entire amount owed, and you didnt answer my question about what happens to the 1st lien holders foreclosure sale if I redeem after. maybe you assumed there was equity but its underwater 200k and the HOA sale was for only 8k, house valued at 400k, but 600k worth of liens/taxes no money to spread around
Expert:  KimberlyLaw replied 6 years ago.
It doesn't matter if there is equity or its under water.

Maybe that notice of trustee sale was created BEFORE the HOA foreclosed. In that case it will not proceed. Or maybe you are confused and the HOA really hasn't foreclosed yet. You can find out by searching the registry of deeds records to see if there is a new owner on record. New owner means no more foreclosures. Only ONE foreclosure can happen. All other liens besides a tax lien would be wiped out.
KimberlyLaw and 2 other Real Estate Law Specialists are ready to help you
Customer: replied 6 years ago.
The HOA recorded title (I looked it up on the OC clerk recorder website) on 7-17 but it is subject the 90 day HOA California redemption law, the 1st lien holder filed a notice of trustee sale on 8-26 with a sale date of 9-21. I still have time to redeem what if I redeem after the 1st liens sale?
Expert:  KimberlyLaw replied 6 years ago.
Maybe they weren't aware of the sale. Or they could just be hedging their bets because they are afraid you will redeem, which brings the mortgages back to life and they don't want to have to restart the foreclosure process.

You have 90 days to redeem from whatever sale there is. So if you redeem with the HOA and then it goes to foreclosure with the bank, you have again another 90 days to redeem from the date of their foreclosure sale.