New California law AB 2273 on bank foreclosures requires lenders to record foreclosure sales within 30 days of the foreclosure.
This bill was passed and signed into law by the governor in September this year - and will become in effect on January 1, 2013 - making lenders accountable for the properties they acquire.
Example: After the foreclosures sale is recorded, the lender must begin paying HOA dues and special assessments as they are levied.
To receive maximum benefit from the new law, homeowners associations must record a blanket "Request for Notice" which would obligate the foreclosing party to give the HOA notice of the new owner within 15 days of the sale.
Start of non-judicial foreclosure process in California is initial notice recorded after borrower fails to meet the terms of their loan. CC 2924c.(a)(1)
Sets auction date. Can be recorded 3 months after Notice of Default
CC 2924 c. (b)(1)
Initial auction date can be just 20 days after Notice of Trustees Sale is recorded.
CC 2924 f. (b)(1)
Auctions can postpone for up to one year.
CC 2924 g. (c)(1)
Transfers property to winning bidder. By default this will be the lender if no bid higher than the lender's opening bid is received. CC 2924 h. (c)
California homeowners associations should be careful to identify new owners of the property after foreclosure and protect their right to be paid assessments according to this new law AB 2273 - requiring lenders to record foreclosure sales within 30 days after the foreclosure.
Harrison K. Long - real estate and business solutions - REALTOR® and broker associate, GRI - Coldwell Banker Residential Brokerage - 949-854-7747 (phone) - ExploreProperties@gmail.com - CA DRE 01410855 - SFR short sale and foreclosure resource certified by the National Association of REALTORs® - now serving as an appointed director at California Association of Realtors - attorney member of the California state bar association #69137
Source of information is ForeclosureRadar.com and Adams Kessler PLC, attorneys re California common interest developments.
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