Navigating HOA Foreclosures and Liens

1. How HOA Liens Work

Under the Davis-Stirling Common Interest Development Act (Cal. Civ. Code § 5600 et seq.), homeowners associations have legal authority to collect dues and enforce liens.
If you fall behind, the HOA can record a Notice of Delinquent Assessment Lien, which attaches to your property like a second mortgage.

That lien allows the HOA to collect:

• Unpaid assessments
• Late fees and interest
• Reasonable collection costs and attorney’s fees

Once recorded, the lien remains in effect until paid or foreclosed upon.

2. The $1,800 or 12-Month Rule

Under Cal. Civ. Code § 5720(b), an HOA cannot foreclose unless:

• The amount owed exceeds $1,800, or
• The assessments are more than 12 months delinquent

This law protects homeowners from minor collection actions escalating into foreclosure.
Until those thresholds are met, the HOA can only pursue small-claims or civil court collection, not a foreclosure sale.

3. The HOA Foreclosure Process

If the debt qualifies, the HOA may authorize a nonjudicial foreclosure similar to a mortgage lender.
The process includes:

1. Recording a Notice of Default
2. Waiting 90 days
3. Posting and publishing a Notice of Sale
4. Selling the property at auction

Unlike mortgage foreclosures, the HOA’s sale typically wipes out junior liens, but not first mortgages. That means the mortgage lender still has rights and may foreclose later.

4. How to Stop or Resolve an HOA Lien

You can stop foreclosure at any point before the sale by paying the total balance plus fees and costs (Cal. Civ. Code § 5715).
Other options include:

• Requesting a payment plan (which HOAs must consider in good faith)
• Disputing unauthorized charges in writing
• Mediating through the HOA board or local Dispute Resolution process (IDR/ADR)

If the HOA violates notice or due-process requirements, courts may invalidate the lien or sale.

5. Protect Yourself

• Open HOA mail immediately. Ignoring it leads to penalties and legal fees.
• Attend HOA meetings and review budgets to anticipate assessment changes.
• Verify lien validity with the county recorder if you receive a notice.
• Consult a real estate or HOA law attorney if foreclosure is threatened.

HOA foreclosures can surprise even responsible homeowners—but California law gives you rights, time, and clear steps to resolve disputes before losing your home.