Real Estate Law

Have real estate law questions? Ask a real estate lawyer.

Ask a Lawyer,
Get an Answer ASAP!

This answer was rated:

An HOA is putting a $2500 lien on an unimproved lot in Lake…

An HOA is putting...

An HOA is putting a $2500 lien on an unimproved lot in Lake County CA. My name as recorded is Dale Moore, Trustee. My ex wife is now trustee through a divorce settlement. The change was never recorded. The trust was dissolved many years ago. My wife and I have an ongoing dispute about the $2500 fine. In what name will the lien be recorded. Will it be against me personally. How likely will it be picked up by credit agencies and what potential effect will it have on my 750+ FICO? I have received a pre-lien letter.

Lawyer's Assistant: Since estate law varies from place to place, can you tell me what state this is in?

CA

Lawyer's Assistant: Has any paperwork been filed?

With the Co Recorder? Not to my knowledge

Lawyer's Assistant: Anything else you want the lawyer to know before I connect you?

I think that covers it.

Show More
Show Less
Ask Your Own Real Estate Law Question
Answered in 5 minutes by:
1/8/2018
Attyadvisor
Attyadvisor, Attorney
Category: Real Estate Law
Satisfied Customers: 9,006
Experience: 30 years of experience in General Practice, Real Estate Law and Estate Law.
Verified

Welcome and thank you for your question. I will be the professional that will be assisting you.

Ask Your Own Real Estate Law Question

An HOA lien is both a personal debt as well as a debt that can be foreclosed.

Ask Your Own Real Estate Law Question

The lien will be in the name of the party or parties that are on the title to the real property. Is the unimproved property lien in your name?

Ask Your Own Real Estate Law Question
Customer reply replied 7 months ago
As written in my question, it is in the name of Dale Moore, Trustee. My name is*****

You are personally liable and can be foreclosed.

Ask Your Own Real Estate Law Question

What matters is the lien was filed against at the time the lien was filed

Ask Your Own Real Estate Law Question
Customer reply replied 7 months ago
Despite that I am trustee?

If it is in the name of a trustee the trustee is liable personally.

Ask Your Own Real Estate Law Question

Is your wife ended up with the real property it needed to be deeded into her name.

Ask Your Own Real Estate Law Question
Customer reply replied 7 months ago
Is it likely that the lien would be picked up and shown on my personal credit report even though it is recorded as Dale Moore, Trustee?

"How HOA Liens Work

In most cases, once you fall behind in payments, the HOA can record a lien on your property. Almost all HOAs have the power to place a lien on the property if the homeowner becomes delinquent in paying the monthly dues and/or any special assessments (collectively referred to as “assessments”).

Pre-Lien Notice Requirement in California

In California, a lien cannot be recorded until 30 days after the HOA has sent notice to the homeowner regarding the delinquent assessments. The notice must include (among other things):

  • a general description of the collection and lien enforcement procedures
  • an itemized statement of the charges owed, and
  • various options to try to resolve the problem of the delinquent assessments (Cal. Civ. Code § 1367.1(a)).

The HOA must notify the homeowner in writing at both a primary and, if available, a secondary address (Cal. Civ. Code § 1367.1(k)).

Board Approval Required Before Lien Can Be Filed

Only the board of directors of the HOA has the authority to make the decision to record the lien for delinquent assessments. The board must approve the decision by a majority vote of the board members in an open meeting and must record the vote in the minutes of that meeting (Cal. Civ. Code § 1367.1(c)(2)).

Charges the HOA May Include in the Lien

In California, an assessment is considered delinquent 15 days after it is due, unless the Declaration of Covenants, Conditions, and Restrictions(CC&Rs) provides for a longer time period (Cal. Civ. Code § 1366(e)).

If an assessment is delinquent, the association may recover all of the following:

  • Assessments. The HOA can include amounts for unpaid assessments in the lien.
  • Reasonable attorney's fees and costs. The association may include the costs expended in attempting to collect the past-due assessments in its lien.
  • Late charge.The association may include a late charge so long as it does not exceed 10% of the delinquent assessment or $10, whichever is greater (unless the CC&Rs specify a late charge in a smaller amount, in which case any late charge imposed cannot exceed the amount specified in the CC&Rs).
  • 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)).

HOA Lien Priority in California

An HOA lien is prior to all other liens recorded after the notice of assessment, except that the CC&Rs may provide that the HOA lien may be subordinated to any other liens and encumbrances (Cal. Civ. Code § 1367(b),(d)). (Learn more about lien priority and what happens to a first mortgage in an association foreclosure in Nolo’s article What happens to my mortgages if the HOA forecloses on its lien?)

HOA Foreclosures in California

If you default on dues or assessments, the HOA can foreclose. A common misconception is that the association cannot foreclose if you are current with your mortgage payments. However, the association’s right to foreclose has nothing to do with whether you are current on your mortgage payments. (Learn more about HOA liens and foreclosure.)

In California, the HOA may foreclose its lien judicially or nonjudicially (Cal. Civ. Code § 1367.1). Most HOA foreclosures in California are nonjudicial. (Learn more about the difference between judicial and nonjudicial foreclosures and foreclosure laws and procedures in California.)

HOA Foreclosure Limitations

California law limits the HOA’s ability to foreclosure in certain circumstances.

Limitation Based on Amount and Length of Delinquency

The HOA cannot foreclose unless:

  • the delinquent amount is $1,800 or more (not including any accelerated assessments, late charges, fees and costs of collection, attorney's fees, or interest), or
  • the owner has been delinquent for more than 12 months (Cal. Civ. Code § 1367.4).

Right of Redemption Following Foreclosure

If the HOA forecloses on the homeowner using a nonjudicial foreclosure, the foreclosure is subject to a 90 day right of redemption after the sale (Cal. Civ. Code § 1367.4(c)(4)). When you redeem the property, you get it back by repaying all assessments, interest, attorneys fees, and possibly costs of repair. (Learn more in Nolo’s article The Right of Redemption Following an HOA Foreclosure.)

In California judicial foreclosures, the redemption period is:

  • 90 days, if the proceeds of the sale are sufficient to satisfy the debt, or
  • one year, if the proceeds from the sale are insufficient to satisfy the delinquency (Cal. Code Civ. Proc. §729.030(a) and (b))." https://www.nolo.com/legal-encyclopedia/california-hoa-foreclosures.html
Ask Your Own Real Estate Law Question

"An HOA Foreclosure’s Effect on Your Credit Score

Your credit score influences the credit that lenders will offer you, as well as the terms, like the interest rate. A FICO credit score, for example, ranges from 300–850. A foreclosure will likely damage your FICO score by reducing it by at least 100 points, probably more. The actual number of points the score will drop varies from one person to the next. If you had a really high credit score before the foreclosure, the drop will be more severe. But if your credit score is already pretty low, there will be less of an impact. Missed HOA payments might also lower your score, if the HOA reports them to the credit reporting bureaus.

A Low Credit Score Will Likely Affect Your Ability to Obtain a Mortgage Later On

When you apply for a mortgage, one of the first things a potential lender will take into consideration when deciding whether or not to lend to you is your credit score. Lenders prefer to make loans to borrowers who are most likely to repay them, such as those people with the highest scores. If you have a low score as a result of a foreclosure, you may be able to get a mortgage loan eventually, but the interest rate will probably be higher or you may have to put more money down." https://www.nolo.com/legal-encyclopedia/hoa-liens-foreclosures-an-overview.html

Ask Your Own Real Estate Law Question
Customer reply replied 7 months ago
This is for a disputed $2500 fine. I am not concerned with foreclosure at this time. The unimproved lot is worth $10,000. My question is if the lien is recorded as Dale Moore, Trustee, Is it likely the credit reporting agencies will pick it up as Dale Moore and add to my personal credit report or does the designation of Trustee confuse the issue?

When you say you are the trustee the land is a trust?

Ask Your Own Real Estate Law Question

If you are the owner in your name alone or through trust it is a personal debt.

Ask Your Own Real Estate Law Question
Customer reply replied 7 months ago
It was originally a trust 30 years ago. The trust (Georgia Moore Trust) no longer exists due to the death of my mother. Due to a divorce, my Ex was awarded the property, but never recorded the name change.

Unfortunately it is still in your name and will be picked up as a personal debt.

Ask Your Own Real Estate Law Question

It may be time to record the property in her name.

Ask Your Own Real Estate Law Question
Customer reply replied 7 months ago
I agree, but will it forestall recording the lien in my name?
Ask Your Own Real Estate Law Question

"There are several legal distinctions between condominiums and Planned Unit Developments (PUDS)—the ownership of common areas is one of the most cited. However, whether a townhouse or a single-family dwelling is part of a PUD or condo development, both are deed-restricted properties subject to homeowner associations regulated by California’s Davis–Stirling Common Interest Development Act in the California Civil Code. A power reserved for the board of all common interest developments is the right to place a lien on the property of an owner who violates the covenants or fails to pay on some association-related debt. The lien lets the board foreclose on and take that property to satisfy the debt.

This is tough for estate planning, because if a lien is applied to the property and the owner passes away, the estate can be attached. This keeps the property from passing to the owner’s heirs until any outstanding debts are paid.

Unfortunately, the most commonly used trusts won’t protect these assets." http://blog.411probate.com/2017/02/trusts-and-home-owners-association-hoa-not-necessarily-a-good-match.html

Ask Your Own Real Estate Law Question

http://www.latimes.com/business/la-fi-associations-trusts-20170201-story.html

Ask Your Own Real Estate Law Question

Trusts do not have the same protections against HOA's due to deed restrictions. If the lien is not recorded yet, transfer the HOA property into her name.

Attyadvisor
Attyadvisor, Attorney
Category: Real Estate Law
Satisfied Customers: 9,006
Experience: 30 years of experience in General Practice, Real Estate Law and Estate Law.
Verified
Attyadvisor and 87 other Real Estate Law Specialists are ready to help you
Ask your own question now

Thank you.

Ask Your Own Real Estate Law Question
Was this answer helpful?

How JustAnswer works

step-image
Describe your issueThe assistant will guide you
step-image
Chat 1:1 with a real estate lawyerLicensed Experts are available 24/7
step-image
100% satisfaction guaranteeGet all the answers you need
Ask Attyadvisor Your Own Question
Attyadvisor
Attyadvisor
Attyadvisor, Attorney
Category: Real Estate Law
Satisfied Customers: 9,006
9,006 Satisfied Customers
Experience: 30 years of experience in General Practice, Real Estate Law and Estate Law.

Attyadvisor is online now

A new question is answered every 9 seconds

How JustAnswer works:

  • Ask an ExpertExperts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional AnswerVia email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction GuaranteeRate the answer you receive.

JustAnswer in the News:

Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.

What Customers are Saying:

Mr. Kaplun clearly had an exceptional understanding of the issue and was able to explain it concisely. I would recommend JustAnswer to anyone. Great service that lives up to its promises!

Gary B.Edmond, OK

My Expert was fast and seemed to have the answer to my taser question at the tips of her fingers. Communication was excellent. I left feeling confident in her answer.

EricRedwood City, CA

I am very pleased with JustAnswer as a place to go for divorce or criminal law knowledge and insight.

MichaelWichita, KS

PaulMJD helped me with questions I had regarding an urgent legal matter. His answers were excellent.

Three H.Houston, TX

Anne was extremely helpful. Her information put me in the right direction for action that kept me legal, possible saving me a ton of money in the future. Thank you again, Anne!!

ElaineAtlanta, GA

It worked great. I had the facts and I presented them to my ex-landlord and she folded and returned my deposit. The 50 bucks I spent with you solved my problem.

TonyApopka, FL

Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help.

Mary C.Freshfield, Liverpool, UK

< Previous | Next >

Meet the Experts:

Barrister

Barrister

Lawyer

12,142 satisfied customers

17 years real estate, Realtor. Landlord 26 years

Infolawyer

Infolawyer

Lawyer

8,377 satisfied customers

Experienced lawyer

Ray

Ray

Lawyer

8,253 satisfied customers

Texas Attorney for 30 years dealing in real estate

LawTalk

LawTalk

Attorney

6,208 satisfied customers

I have 30 years legal experience. Additionally, in CA I held a Real Estate Broker's license.

Dimitry Esquire

Dimitry Esquire

Attorney

5,526 satisfied customers

JA Mentor, multiple jurisdictions, specialize in business/contract disputes, estate creation & admin

Ely

Ely

Counselor at Law

4,998 satisfied customers

Qualified attorney in private practice including business, family, criminal, and real estate issues.

P. Simmons

P. Simmons

Lawyer

3,572 satisfied customers

12+ yrs. of experience including real estate law.

< Previous | Next >

Related Real Estate Law Questions
An HOA is putting a $2500 lien on an unimproved lot in Lake
Second opinion] An HOA is putting a $2500 lien on an unimproved lot in Lake County CA. My name as recorded is Dale Moore, Trustee. My ex wife is now trustee through a divorce settlement. The change wa… read more
Barrister
Barrister
Lawyer
Doctoral Degree
12,142 satisfied customers
In January we purchased a condominium at a foreclosure sale
In January we purchased a condominium at a foreclosure sale in California, and subsequently recorded the Trustees Deed upon Sale in our names. In doing our due diligence prior to the sale, we had foun… read more
Barrister
Barrister
Lawyer
Doctoral Degree
12,142 satisfied customers
I need some legal counsel form a knowledgeable and
I need some legal counsel form a knowledgeable and experienced HOA attorney.Issues (summary): Tom and/or Abby HouseOn or about 7/25/2000, were provided a signed statement from Conrad Nebeker attesting… read more
CalAttorney2
CalAttorney2
Attorney
Doctoral Degree
8,845 satisfied customers
The HOA or its management agent put a lien on my property
The HOA or its management agent put a lien on my property for unpaid assessments without notifying me I have a right to dispute or ask for a meet and confer, also did not send me the HOA's collection … read more
Phillips Esq.
Phillips Esq.
Attorney
JD
20,508 satisfied customers
While in the process of trying to sell my home, I've been contacted
While in the process of trying to sell my home, I've been contacted by a bank that says there is an outstanding lien from a leasing Co. (Pentek Leasing Inc.) San Jose CA. that I have learned Merged ou… read more
Barrister
Barrister
Lawyer
Doctoral Degree
12,142 satisfied customers
Purchased home in aug 2005. nevered payed HOA dues. June 2009
Purchased home in aug 2005. nevered payed HOA dues. June 2009 trustee's deed. We sued took two years and Aug 2011 deed was rescinded. Hoa is now trying to collect back to 2005. It is my thought that t… read more
Ely
Ely
Counselor at Law
Juris Doctor
4,998 satisfied customers
Unbeknownst to me, a property was grant deeded to me in 2005.
Unbeknownst to me, a property was grant deeded to me in 2005. Their was an assessment lein filed in my name, followed by a notice of delinquent assessment and then notice of default and election to se… read more
CalAttorney2
CalAttorney2
Attorney
Doctoral Degree
8,845 satisfied customers
Im going to bid on homes up for county Auction in Sacramento
I'm going to bid on homes up for county Auction in Sacramento county, California next month. If the house is renter occupied, what should I watch out for and what steps should I take to protect my pro… read more
TaxAttorneytoHelp
TaxAttorneytoHelp
Owner
Doctoral Degree
2,542 satisfied customers
We purchased a 4-plex out of foreclosure 4/2010 free and clear.
We purchased a 4-plex out of foreclosure 4/2010 free and clear. There were 15 other 4-plex's in the complex. The property was purchased in 2005 and subdivided into 16 individual lots with each lot own… read more
socrateaser
socrateaser
1,031 satisfied customers
In California, can a HOA foreclose on a property to collect
In California, can a HOA foreclose on a property to collect delinquent assessment fees even though the first delinquent fee was 6 years delinquent and the second delinquent fee was 5 years delinquent,… read more
BartEsq
BartEsq
Attorney
Doctoral Degree
674 satisfied customers
CA property forclosed 11/2010 - to lender, B of A. No lien
CA property forclosed 11/2010 - to lender, B of A. No lien for HOA dues ever filed. I received zero from HOA in months prior to sale, and zero after the sale. Now I have a collection agency sending me… read more
evanesq
evanesq
Managing Attorney
Doctoral Degree
6 satisfied customers
I am being sued by my former HOA. They were the HOA for my
I am being sued by my former HOA. They were the HOA for my old foreclosed house. They filed a notice of lien at our local county in California on 12/3/2009. This occurred several days after a Notice o… read more
Dimitry Esquire
Dimitry Esquire
Attorney
Doctoral Degree
5,526 satisfied customers
For my house in San Jose, CA, I missed paying $700 worth of
For my house in San Jose, CA, I missed paying $700 worth of homeowners' association dues. The hoa turned it debt over to a collection agency, who added $3800 worth of fees. I've since paid the origina… read more
Law Pro
Law Pro
Doctoral Degree
19,000 satisfied customers
My Condominiums Association has referred my overdue monthly
My Condominium's Association has referred my overdue monthly assessment fees to a collection agency. That agency placed a lien on my property and wanted the fees amounting to $4,600 payed in full as o… read more
Barrister
Barrister
Lawyer
Doctoral Degree
12,142 satisfied customers
I am in CA and am delinquent about 11 mos in my hoa dues.
I am in CA and am delinquent about 11 mos in my hoa dues. The association hired a collection agency and filed a lien. I tried to work with the agency, however, the agreement they sent me did not agree… read more
lucy7368
lucy7368
Juris Doctor
763 satisfied customers
Excessive HOA fees We were paying our HOA fees, but got
Excessive HOA fees: We were paying our HOA fee's, but got behind 4 months due to a lay off, however we were at a HOA meeting 2 years ago and found out the builder did not pay or file the correct paper… read more
TJ, Esq.
TJ, Esq.
Juris Doctor (JD)
11,463 satisfied customers
I work as a new paralegal for a law office that represents
I work as a new paralegal for a law office that represents HOA's in collections of assessments and dues which are liens on the property however, that is not all we do. If there is an underlying mortga… read more
Ray
Ray
Lawyer
Doctoral Degree
8,253 satisfied customers
I am a Buyer attempting to buy a Condo on a short sale in Orange,CA
I am a Buyer attempting to buy a Condominium on a short sale in Orange,CA . The property has a $2500 HOA judgement lien on it which was filed against the property owner by the HOA's law firm. The bank… read more
Barrister
Barrister
Lawyer
Doctoral Degree
12,142 satisfied customers

DISCLAIMER: Answers from Experts on JustAnswer are not substitutes for the advice of an attorney. JustAnswer is a public forum and questions and responses are not private or confidential or protected by the attorney-client privilege. The Expert above is not your attorney, and the response above is not legal advice. You should not read this response to propose specific action or address specific circumstances, but only to give you a sense of general principles of law that might affect the situation you describe. Application of these general principles to particular circumstances must be done by a lawyer who has spoken with you in confidence, learned all relevant information, and explored various options. Before acting on these general principles, you should hire a lawyer licensed to practice law in the jurisdiction to which your question pertains.

The responses above are from individual Experts, not JustAnswer. The site and services are provided “as is”. To view the verified credential of an Expert, click on the “Verified” symbol in the Expert’s profile. This site is not for emergency questions which should be directed immediately by telephone or in-person to qualified professionals. Please carefully read the Terms of Service (last updated February 8, 2012).

DISCLAIMER: Answers from Experts on JustAnswer are not substitutes for the advice of an attorney. JustAnswer is a public forum and questions and responses are not private or confidential or protected by the attorney-client privilege. The Expert above is not your attorney, and the response above is not legal advice. You should not read this response to propose specific action or address specific circumstances, but only to give you a sense of general principles of law that might affect the situation you describe. Application of these general principles to particular circumstances must be done by a lawyer who has spoken with you in confidence, learned all relevant information, and explored various options. Before acting on these general principles, you should hire a lawyer licensed to practice law in the jurisdiction to which your question pertains.

The responses above are from individual Experts, not JustAnswer. The site and services are provided “as is”. To view the verified credential of an Expert, click on the “Verified” symbol in the Expert’s profile. This site is not for emergency questions which should be directed immediately by telephone or in-person to qualified professionals. Please carefully read the Terms of Service (last updated February 8, 2012).

Show MoreShow Less

Ask Your Question

x