HOA Foreclosure Judgment
Posted: Fri Jul 25, 2014 2:08 pm
That is an interesting fact pattern.
After HOA's successful judicial foreclosure action, ajudgment for sale of the real property was entered in superior court. The debtor didn't appeal thereal property sale judgment or pay the judgment. Thereafter the debtor file a bankruptcy.
A writ of execution on the judgment was stayed during the bankruptcy case based upon the debtor's right to payoff the judgment prior to sale.
While the discharge injunction protects the debtor froma potential
I don't think the recording of an abstract of the sale judgment was necessary to protect that judgment, it was likely done for constructive notice purposes.
That's my best guess without researching.
Chapter 13?
Law Office of Peter M. Lively * Personal Financial Law Center I
11268 Washington Boulevard, Suite 203, Culver City, California 90230-4647
Telephone: (310) 391-2400* Toll Free: (800) 307-3328 * Fax: (310) 391-2462
On Thursday, July 24, 2014 2:27 PM, "Bill Constantino billconstantino@yahoo.com [cdcbaa]" wrote:
Dear List mates:
Unusual fact pattern regarding HOA judgment and lien:
1. HOA files assessment lien
2. HOA then files complaint to foreclose assessment Lien and on Open Book Account (HOAs are not subject to single action rule)
3. HOA filed lis pendens
4. HOA obtains judgment for foreclosure and in the alternative money judgment for fees due up to date of judgment
5. HOA files abstract of judgment
6. HOA partially executes on money judgment
7. HOA does not foreclose
7. Client files Chapter Seven
8. 522f Motion filed and order entered voiding judgment lien.
9. Discharge entered
10. HOA is now moving to foreclose on Client's home stating that the foreclosure judgment survived the bankruptcy not withstanding the 522f order.
In responding to foreclosure I ordered Title to research the property for liens of any kind. The assessment lien popped up. Per Diamond Heights Village Assn., Inc. v. Financial Freedom Senior Funding Corp. 196 Cal App. 4th 290 the assessment lien went away when the underlying debt was merged into the final judgment. I think the HOA agrees with this rational. clear that the HOA must pursue judgment remedies. I believe that the 522f order voided the entire judgment lien and HOA became an unsecured creditor for all purposes and subject to the discharge injunction. As the underlying debt that gave rise to the foreclosure order was discharged the HOA should not be able to foreclosure post discharge absent a either a statutory lien or judgment lien.
Am I missing something? Thank you for any input.
William D. Constantino, Esq.
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