Redeem Property After HOA Foreclosure

Right of Redemption Following Foreclosure

If the HOA forecloses on you with a nonjudicial (without going to court) foreclosure, the foreclosure is subject to a 90-day right of redemption after the sale. (Cal. Civ. Code § 1367.4(c)(4)).

You can redeem your property and GET IT BACK by repaying all assessments, interest, attorneys' fees, and possibly costs of repair.

If the property was sold at auction, YOU DO NOT HAVE TO PAY THE SALE PRICE. Even if the HOA attorney tells you that must pay the auction price, you don’t! The money from the auction sale is held in trust for 90 days if you redeem your property (by paying all the back assessment, etc.) in that period the money held is trust is “paid” back to the auction purchaser.

In California judicial foreclosures, the redemption period is: 90 days, if the proceeds of the sale are sufficient to satisfy the debt (which they almost always are), or one year, if the proceeds from the sale are insufficient to satisfy the delinquency. (Cal. Code Civ. Proc. §729.030(a) and (b)).