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Ray, Lawyer
Category: Real Estate Law
Satisfied Customers: 42815
Experience:  Texas Attorney for 30 years dealing in real estate
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In california; how much can the buyer of the HOA lien at a

Customer Question

In california; how much can the buyer of the HOA lien at a HOA foreclosure sale charge the redeeming owner to redeem their property in addition to HOA arrears/fees/interest? What if the buyer pays more for the lien than the amount of outstanding arrears/fees, etc., will the homeowner have to pay that purchase amount over and above the arrears as well?
Submitted: 1 year ago.
Category: Real Estate Law
Expert:  Ray replied 1 year ago.
Hi and welcome to JA. Ray here to help you today. In most cases, to redeem the property following the foreclosure sale, the homeowner must pay:the total assessment lien amountinterest, andattorneys’ fees and costs.Additionally, in California, if a homeowner wishes to exercise her right of redemption, the redemption price will include any repair costs paid by the purchaser that were reasonably necessary for the preservation of the property (Barry v. OC Residential Properties, LLC, 194 Cal.App.4th 861 (2011)). The purchaser at the foreclosure sale may pay for maintenance and repair work if:the property is in need of repair, andthe repairs made are necessary to prevent further damage to the property.Then, if the homeowner chooses to redeem the property, the redeeming homeowner must reimburse the purchaser for those expenses. If you have additional expenses then you can force them to repay these purchase amounts over the arrears too. I appreciate the chance to help you today.Thanks again.
Expert:  Ray replied 1 year ago.
Customer: replied 1 year ago.
Ray, thanks for your reply. However, I saw this same answer on the internet. I still would like to know the answer to the part of the question referring to interest; how much in interest can they charge the homeowner as part of the redemption the property?
Expert:  Ray replied 1 year ago.
Interest. The HOA may impose interest on all of the above charges, including the delinquent assessments, reasonable attorney's fees, and reasonable fees and costs of collection at an annual interest rate not to exceed 12% (unless the CC&Rs specify a lesser amount, in which case the lesser rate of interest applies), beginning 30 days after the assessment becomes due (Cal. Civ. Code section 1366(e)). Here this would be rolled into the HOA amount, you would be due HOA dues, interest, fees, and interest as set out above not to exceed 12%.
Expert:  Ray replied 1 year ago.
When you redeem the property, you get back all assessments, interest, attorneys fees, and possibly costs of repair.In California judicial foreclosures, the redemption period is:90 days, if the proceeds of the sale are sufficient to satisfy the debt, orone year, if the proceeds from the sale are insufficient to satisfy the delinquency (Cal. Code Civ. Proc. §729.030(a) and (b)).
Expert:  Ray replied 1 year ago.
If you can positive rate it is always sincerely appreciated.