J & N REALTY, INC.

Foreclosure of a Delinquent Assessment Lien – Step by Step  

1) Association levies assessment 

2) Assessment becomes delinquent per Civil Code/governing documents 

3) Association (via board or manager) may send notices of delinquency per governing documents/association collection policy 

4) Written Notice of Lien (or “Pre-Lien Notice”) is sent via certified mail – must meet requirements set forth in Civil Code section 1367.1  

5) At least 30 days elapse  

6) If assessment is debt not paid, board must determine whether to foreclose; decision to foreclose must be made by majority vote of the Board and noted in minutes of next open board meeting (by reference to parcel number)  

7) Association must offer to participate in “meet and confer” or ADR with owner prior to initiating foreclosure  

8) Board decides whether to proceed with judicial or non-judicial foreclosure; notice of Board’s decision provided by personal service  

• If judicial foreclosure – complaint for judicial foreclosure prepared, filed and served and lawsuit commences  

• If non-judicial foreclosure, proceed with steps 9 through 12, below 

9) Notice of Default prepared and recorded 

10) Copy of Notice of Default sent to all interested parties (including junior lienholders) by certified mail and served on owner or owner’s legal representative  

11) Foreclosure sale date scheduled and Notice of Trustee’s Sale recorded  

12) Property sold at foreclosure sale to highest bidder or to association if no third party bidder