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Pacific Association Collections

Lien Service • Non-Judicial Foreclosures

Homeowner Association Lien Services

Pacific Associations Collections represents homeowner associations throughout California in collecting delinquent assessments.

No initial fee or deposit is required

While our collection procedures rarely require us to proceed to foreclosure, our firm uses the non-judicial foreclosure process when it becomes necessary.

If a judicial foreclosure makes more sense, we will have one of our attorneys call you to explain all options available to your homeowner association.

No Initial Fee Assessment Collection Service provides the following benefits to homeowner associations.

No upfront fees or deposit is required. All fees and costs are billed directly to the delinquent homeowner.

Our assessment collection service is attorney supervised. Thus, we make certain that the collection process fully complies with the California Civil Code, the Federal Fair Debt Collections Practice Act, the Rosenthal Fair Debt Collection Practices Act, and your association's CC&Rs.

Our HOA assessment collection experts monitor real estate lender activity and provide advice to your association board on what collection action is most cost-effective given all facts to be considered.

While only a small percentage of delinquent homeowners file for bankruptcy protection, our bankruptcy attorneys can provide your association's board with any available options should it be necessary.

While our homeowner associations are rarely faced with the option of foreclosing on a property, our assessment collection attorneys can advise your board on all aspects of foreclosures. If requested, we can also provide advice on dealing with any occupants, management, insurance, and the disposition of the property.

PAC can collect your homeowner association's unpaid Small Claims Court and Superior Court judgments when you utilize our collection services. We collect judgments against homeowners living within your community, former owners, contractors, and vendors. Call us at 818-991-9019 for additional information or you may complete the Judgment Collection Data Form.

Timeline of Non-Judicial Foreclosure Process

This is a summary only and should not be relied upon for legal advice.

PAC is notified when a homeowner becomes delinquent in paying their assessments.

The HOA starts the process by retaining PAC.

PAC verifies legal ownership and the status of title.

A Pre-lien Notice (Lien Warning Letter) is sent to all record owners by regular certified mail.

A thirty day statutory period begins to run.

The process continues unless an owner demands IDR, ADR, disputes the debt, or files for bankruptcy.

The board must vote in open session at a board meeting to authorize the recording of a lien. The decision must be recorded in minutes.

The lien is prepared and recorded after the conclusion of the first thirty day statutory period.

The second thirty day statutory period begins to run upon the recording of the lien.

A copy of the recorded lien is sent to every owner of record by regular and certified mail within 10 days of the recording date.

The process continues unless an owner demands IDR, ADR, disputes the debt, or files for bankruptcy.

The board must vote in executive session of a board meeting to authorize the foreclosure of a property. The decision must be recorded in the minutes and the decision to foreclose must be personally served on the owners if owner occupied.

The process continues unless an owner demands IDR, ADR, disputes the debt, or files for bankruptcy.

A seven day Intent to Foreclose Notice is sent to the delinquent owner before a foreclosure is started.

A Notice of Default (NOD) is prepared and recorded after the seven day warning and after PAC obtains a Trustee's Sale Guarantee (TSG). A copy of the recorded document is sent to every owner of record by regular and certified mail within 10 days of the recording date.

A statutory three month waiting period begins.

A copy of the Notice of Sale is sent to all interested parties that have requested notice by certified mail.

A Notice of Sale is prepared, posted on the property, and recorded. A copy of the recorded document is then mailed to every owner of record by regular and certified mail at least 20 days before the sale date. The sale date cannot be earlier than three months and 20 days after recording the NOD. A TSG update is obtained.

The process continues unless an owner demands IDR, ADR, disputes the debt, or files for bankruptcy.

Assuming the assessments owing are $1,800 or more, or more than 12 months delinquent, the property is sold to the highest bidder or reverts to the HOA to satisfy delinquent assessments and the cost of collection. The trustee prepares and records the required documents.

In the extremely unlikely event that an HOA acquires a property by foreclosure, PAC can arrange the short term management and sale of the individual unit for the HOA.

A 90 day Right of Redemption runs from the date of the trustee's sale.

Phone

(818) 991-9019

MChulak@MTCLaw.com