Facts: An off-site owner of property in a homeowners’ association (HOA) became delinquent on their monthly assessments. The HOA scheduled a nonjudicial foreclosure sale and notified the owner. The HOA later cancelled the scheduled foreclosure but conducted it on a later date without notifying the owner. The owner became aware of the foreclosure after the running of the 90-day post-sale right of redemption.
Claim: The owner sought to void the foreclosure, claiming the HOA did not notify them of their 90-day right of redemption following the nonjudicial foreclosure sale since the HOA did not inform the owner the foreclosure sale was rescheduled and eventually completed.
Counterclaim: The HOA sought to sustain the foreclosure, claiming the owner failed to exercise their right of redemption before it expired since the owner was notified of the postponed, initial foreclosure sale.
Holding: A California Court of Appeals held the foreclosure was void since the HOA did not notify the owner of their 90-day right of redemption following the nonjudicial foreclosure sale. [Multani v. Witkin & Neal (2013) __ CA4th__]
Editor’s note — The owner of a unit in a common interest development (CID) has 90 days after the trustee’s foreclosure sale on an HOA assessment lien to redeem the unit. This is distinct from the standard redemption period applicable to non-HOA units which expires five business days before the trustee’s sale. This HOA-specific legislation was adopted to stymie the efforts of an HOA attempting to initiate foreclosure to collect overdue HOA assessments of minimal value.