The timeline
1. File Submission Form received from Property Management Company and/or Homeowners Association (Association).
2. United Trustee Services (UTS) prepares the Pre-Lien letter and serves it to the homeowner by Certified and First-Class Mailings (passage of 30 days from such mailing is required before proceeding to the next step). Civil Code Section 5650(a), 5660, 5660(a)(f), 5675, 5685(a), 5725(a).
In conjunction with the mailing of the Pre-Lien letter, UTS provides an Authorization to Record (ATR) a Lien form to the Property Management Company and/or the Association to have it signed by a Board representative to authorize UTS to proceed with the filing of a Notice of Delinquent Assessment (NODA) (the NODA can be recorded no earlier than 30 days after the Pre-Lien notice). Note: Not needed for Commercial collections account.
3. UTS records the NODA. Civil Code Section 5650(a), 5660, 5660(a)(f).
If the homeowner does not have a delinquent balance of at least $1,800 or has not been delinquent for 12 months, the account will be monitored to determine when one of these two thresholds are met, to permit proceeding with the Notice of Default and Election to Sell (NOD).
4. If the homeowner has been delinquent for 12 months or has delinquent assessments of at least $1,800, UTS will proceed with the NOD. Then the NOD recommendation is sent to our client for review, with NOD (ATR) to be signed and invoiced for a TSG fee.
A. The NOD can be recorded no earlier than 30 days after the NODA and $1800 or 12 months. Civil Code Section 5735, 5700(a), 5710(a), 5710(c)(1)-(2).
B. Not less than three (3) months shall elapse from the filing of the NOD until the Notice of Sale may be provided. Civil Code Section 2924(a)(2)(3), Civil Code Section 2924(f). The NOD stage is a 90-day redemption period after recordation. Civil Code Section 2924(a)(2)(3). NOS recommendation will be sent with NOS ATR and affidavit of non-military service and invoice for Publishing and Posting deposit.
C. UTS will also provide to the Association a form to complete confirming that at least 30 days prior to any public sale, the Board voted to foreclose the lien.
D. Several weeks prior to the 90-day expiration period of the NOD, UTS will provide to the Association information relating to the approximate amount owing on the property as to all liens and an estimated value of the property so that the Association can determine the approximate equity in such property and whether the Association should continue with the non-judicial process or proceed with a judicial foreclosure.
5. If payment is not made within the 90-day redemption period of the NOD, UTS records a Notice of Sale (NOS), with the sale date specified in the NOS being approximately 21 days after the recordation of the Notice of Sale. Civil Code Section 2924(f)(b).
6. Absent payment of the amount owing or a continuance of the sale, the foreclosure sale shall be conducted, and the property sold. One of the following may occur:
A. Association acquires the property absent any bidders.
B. An interested party bids and purchases the property, thus curing debt owed to Association.
7. Following the sale, the homeowner has a 90-day redemption period. Civil Code Section 729.035.
8. Civil Code CID Foreclosure Right of Redemption. Code of Civil Procedure 729.035. Notwithstanding any provisions of law to the contrary, the sale of a separate interest in a common interest development is subject to the right of redemption within 90 days after the sale, if the sale arises from a foreclosure by the Association of a common interest development pursuant to Sections 5700, 5710, 5735 of the Civil Code, subject to the conditions of Sections 5705, 5715, 5720 of the Civil Code.