Filing a Lien on a property in LA County

Hugh R · 03-03-2011, 03:32 PM

One of our HOA members is losing his house to the bank later this month, its to be auctioned. He owes the HOA about $2K, do I need a real estate lawyer to file a lien? Do I need to get a small claims judgment first?

McLovin · 03-03-2011, 03:47 PM

you need to have a basis for filing the lien (like a security agreement, judgment, etc.). you can't just file a lien because money is owed.

it's not clear, but it sounds like it's not "you" who wants to file a lien, but the HOA wants to file it. In the HOA governing docs, it probably gives them the right to file a lien for unpaid association dues, without the need for a judgment. so if the $2k is owing for dues, your docs probably allow the lien.

technically anyone could do this, but I think an HOA would typically have a lawyer for that. One that doesn't charge too much for this kind of routine thing.

Also, as a practical matter, it probably doesn't matter if a lien is filed or not. The person is almost certainly letting the So Cal house go, b/c like many in the "Land Where RE Prices Never Go Down" (lol, tip of hat to the More Bad RE News thread) there is almost certainly no equity in the house. So when the first position lender forecloses, all the junior liens (of which yours would be) will be wiped out.

Bottom line: 99% chance you will never see a penny, no matter what you do.

MikeSid · 03-03-2011, 03:55 PM

In Washington, HOA liens have a statutory priority for 6 months of association dues which takes priority over senior liens based on the lien right relating back to the date of formation of the association - which would typically be prior to creation of the first mortgage. California may have a similar statute.

In all other respects, McLovin is right on.

Hugh R · 03-03-2011, 04:32 PM

Thanks guys, yes it would be filed on behalf of the HOA for back dues. One of our residences uses a local real estate lawyer and he's contacting him today/tomorrow.