Homeowners Association Trustee Must Notify Delinquent Homeowners of Redemption Right Following Foreclosure Sale of Their Condominium Unit
Multani v. Witkin & Neal, Castle Green Condominium Association, etc.
By David Swedelson, Condo Lawyer and HOA Attorney, Partner at SwedelsonGottlieb, Community Association Attorneys
As we have previously reported, when property is sold through non-judicial foreclosure on an assessment lien, buyers (third parties or the association) take ownership subject to a 90-day right of redemption, which allows the foreclosed owner to recover the property if the owner pays the delinquency and any fees and costs (Civil Code §1367.4(c)(4); Code of Civil Proc. §729.035).
This right of redemption is unusual in that it does not apply to non-judicial foreclosure on trust deeds; it was added to the law for community associations several years ago to help owners so they do not lose their homes because they did not pay their associations’ assessments or fees. Owners rarely take advantage of this right. But that does not mean that the foreclosing association and, more specifically, the foreclosure trustee retained by the association do not need to give notice of this right. And this was confirmed in the recent Court of Appeal decision in the case of Multani v. Witkin & Neal.