Contact Us 619-589-8800

Non-judicial Foreclosure

Enforcement of the assessment lien is accomplished by way of a non-judicial foreclosure.  Non-judicial foreclosure is an approximately seven-month-long process with four distinct phases:

Phase One: The Notice of Default.

Recording a Notice of Default commences the non-judicial foreclosure.  The Notice of Default announces that the homeowner owes a certain amount of money, including delinquent assessments, late charges, costs of collection and costs of foreclosure, to the association, and has ninety (90) days to pay the amount due.

Phase Two: The Notice of Sale.

If ninety (90) days passes after the Notice of Default is recorded and there is no payment by the homeowner, then the association can record the Notice of Sale.  The Notice of Sale updates the amount owed by the delinquent homeowner, and announces that the homeowner must pay within twenty (20) days, or the property may be sold at public auction (i.e., the foreclosure sale).

Phase Three: The Foreclosure Sale.

If the homeowner does not pay the debt (or make arrangements to do so through a payment plan), a foreclosure sale will occur.  The foreclosure sale is literally held on the courthouse steps, with the foreclosure trustee seeking bids for the property from the public.  The association will have placed the opening bid by way of what is called a credit bid which is authorization to treat the amount owing at the time immediately preceding the sale as the association's purchase price to zero the account.  If there are no qualified bidders, the credit bid prevails and the creditor becomes the owner of the property.

Phase Four: The Redemption Period.

Under the Davis-Stirling Common Interest Development Act, Civil Code Section 1367.4(c)(4), a foreclosure sale pursuant to an assessment lien is subject to a ninety (90) day right of redemption by the homeowner.  The foreclosure sale does not result in a clear transfer of title.  For ninety (90) days, the homeowner may pay all delinquencies, etc.,  and costs of collection, including the costs of foreclosure, and obtain title.  After ninety days has passed without payment, however, a Trustee's Deed Upon Sale is issued, and the winning bidder at the sale (typically the association) is given title to the property.

As described elsewhere on this website, prior to initiating foreclosure by recording the Notice of Default, the association must serve the debtor with a notice stating that the board has voted to initiate foreclosure. If the association becomes the owner of the property, the association's ownership is subject to the homeowner's mortgage on the property.  The association is not liable to pay off the mortgage, but the lender can initiate its own foreclosure and take title to the property (and the lender is not subject to the Davis-Stirling Act's ninety-day right of redemption).

Click here for a Non-Judicial Foreclosure Flowchart, showing the events of a non-judicial foreclosure. 


Kriger Law Firm is committed to answering your questions about Community Association General Counsel, Governing Document Revisions, Alternative Dispute Resolution, CC & R Enforcement Litigation, and Common Interest Development law issues in California.

We'll gladly discuss your case with you at your convenience. Contact us today to schedule an appointment.

The materials appearing on this website are provided for informational use only. They are in no way intended to constitute legal advice or the opinions of this law firm or any of its attorneys. You should not act or rely upon any information appearing on this website without seeking the advice of an attorney. Also, because the law is continually changing, the materials appearing on this website are not guaranteed to be correct, complete, or up-to-date.

Transmission and receipt of the information on the Kriger Law Firm website are not intended to create an attorney-client relationship, nor will the act of sending an e-mail to attorneys at Kriger Law Firm create an attorney-client relationship. Thus, we strongly advise against sending confidential or privileged information to us until you can establish such a relationship. Furthermore, we advise against sending privileged or confidential information through e-mail since we can in no way ensure the security of your e-mail.

Some jurisdictions would consider the materials appearing on this website to constitute advertising. The decision to hire a lawyer should not be based on the written information appearing on this website about the qualifications and experience of this firm and its members.

Links that may appear on this site are intended solely for your convenience in identifying and accessing other sources of information and are not to be construed as being endorsed by or affiliated with our office. Furthermore, Kriger Law Firm does not imply that it is legally authorized to use any trade name, registered trademark, symbol, logo, or seal that may be reflected in any of these links. Kriger Law Firm has sought to comply with all legal and ethical requirements in creating this website. Kriger Law Firm in no way seeks to use this website in any way as to represent anyone in a state where this site may fail to comply with the laws and ethical requirements of that state.