Stricter recording and notification requirements for lenders foreclosing on CID units
Civil Code §§2924.1, 2924b
Added by and Amended by A.B. 2273, respectively
Effective date: January 1, 2013
A foreclosing lender must record a trustee’s deed within 30 days of acquiring a common interest development (CID) unit at a trustee’s sale.
Homeowners’ associations (HOAs) may request a copy of the trustee’s deed from the lender. The requested trustee’s deed must now be mailed within 15 business days of the date of the trustee’s sale, instead of the date the trustee’s deed is recorded.
Editor’s note — Prior to the passing of these laws, lenders did not have to record trustee’s deed after foreclosing on a CID unit. As a result, HOAs had a difficult time identifying the new owner responsible for paying HOA assessments. These new laws require lenders to provide notification of ownership contingent on the date of the sale, not the recording. For good measure, it also requires the trustee’s deed to be recorded, in case the lender “forgets” to notify the HOA upon the sale.