The recovery of delinquent assessments can seem like a time-consuming and lengthy process. It is important that Association Community Managers and the Board members have a general understanding of the non-judicial foreclosure process.
Below is a timeline describing the non-judicial foreclosure process that we are utilizing in order to collect delinquent assessments.
HOA Non-judicial Foreclosure Timeline
01
File Submission And Association Authorization To Initiate Collection
New Account is received by Blackstone Trustee Services. Homeowners are verified and account is on-boarded into our collection cloud-based platform. Between 24 - 48 hours for verification and on-boarding until notice is mailed.
02
Notice Of Intent To Lien (pre-lien Demand Letter)
Notice of Intent to Lien is sent to the delinquent homeowner(s) warning them of impending Notice of Delinquent Assessment (Lien). 30-day waiting period until Notice of Assessment (Lien) can be recorded in accordance with California Civil Code/ Davis-Stirling Act.
03
Notice Of Delinquent Assessment And Claim Of Lien
Notice of Delinquent Assessment (Lien) is recorded and sent to the homeowner(s) warning them of impending Notice of Default. Prior to recording the Lien, the Board of Directors of the Association must approve recordation of Lien by in an open meeting. 30-day waiting period until Notice of Default and Election to Sell can be recorded in accordance with California Civil Code requirements
04
Notice Of Default And Election To Sell
Prior to recording the Notice of Default the Board of Directors must approve to initiate foreclosure on a property in an executive meeting. Once the Decision to Foreclose has been personally served a Notice of Default and Election to Sell is recorded and sent via regular and certified mail to the property and mailing addresses as well as to all interested parties on title. 90-day waiting period until Notice of Trustee Sale can be prepared and published.
05
Notice Of Trustee Sale
A Notice of Trustee Sale is prepared, published (for 3 consecutive weeks), posted and mailed. Notice of Trustee Sale is recorded at the County Recorder’s Office. Association’s Sale Date has been set per Notice of Trustee Sale.
06
Property Sold To 3 Rd Party Bidder At Sale
If a 3rd party bidder at sale purchases the property, the total amount owed to Association and collection fees/costs are paid in full. Trustee's Deed Upon Sale is recorded in new owners upon expiration of a 90-day redemption period.Property Reverts To Association At Sale
If no bidders are present at sale, the property reverts to the Association. Trustee's Deed Upon Sole Is recorded in the Association’s name upon expiration of a 90-day redemption period.
07
Trustee's Deed Upon Sale Is Recorded
Deed is recorded in new owner's name and file is closed
