| January 1 | The association does not receive the homeowner's monthly assessment. |
| January 16 (15 days or the date specified in the declaration if it is later) | Pursuant to California
Civil Code Section 1366, an assessment is late 15 days after it became due
unless the declaration specifies a later date, in which case the later date
applies. Therefore, the unpaid
assessment is now late and a 10% or $10.00 charge, whichever is greater, unless
a lesser amount is specified in the declaration, in which case the lesser
amount applies, is now also owed to the association.
|
| February 1 (30 days since first late assessment was due) | The January assessment is still not received, and the association can now charge interest at the rate of 12% per annum on the total unpaid balance, pursuant to California Civil Code Section 1366, unless the declaration provides otherwise. In addition, the February assessment is now due. |
| February 15 (45 days since first late assessment was due unless a longer period is specified in the declaration) | A second late charge is added with the late February payment. At this time, the association should send a demand letter to the delinquent homeowner requesting immediate payment. |
| March 1 (Assessments are now 2 months past due) | The assessment for March now becomes due. If assessments are still delinquent for January and February, the matter should be turned over to Association Lien Services. At this time, an attorney's letter will be sent in accordance with Civil Code Section 1367(a) demanding the assessments be paid within thirty (30) days or the non-judicial foreclosure process will commence. Added to the demand will be the late fees, interest, attorneys' fees and other collection costs. The letter advises the homeowner that failing to bring his or her account current will result in a lien being recorded against his or her property. |
| March 31 (30 days from the date of the attorney demand letter) | Depending on when the matter is transferred to ALS, the lien will be recorded in accordance with Civil Code Section 1367. The lien secures the delinquent homeowner's assessment obligation to the association. The non-judicial foreclosure proceedings can now be commenced. It is at this stage that most ALS accounts are brought current. |
| April 20 (10 days before preparation of a Notice of Default) | A reminder letter is sent to the delinquent homeowner advising him or her of the current balance due and that ALS will proceed with foreclosure if payment is not received in ten (10) days. |
| April 30 (30 days after recordation of lien per Civ. Code Section 1367(e)) | If assessments are still delinquent, a Notice of Default (NOD) is recorded. The NOD advises the delinquent homeowner that he/she has three (3) months to settle the unpaid assessments, late charges, attorneys' fees, trustee fees and costs before the non-judicial foreclosure sale commences. The NOD is mailed to all interested parties. |
| Upon Request | At any point during the non-judicial foreclosure process, a delinquent homeowner may request a payment plan to be paid in six months or less. ALS then submits the request to the Board of Directors, which has the discretion to accept or reject the payment plan. If a homeowner requests to meet with the Board in executive session within 15 days of the date of the preliminary notice, the Board (or a committee of the Board) must meet with the owner within 45 days after the request. |
| July 30 (3 months after NOD is recorded) | If the delinquent assessments continue to remain unpaid, an ALS Trustee will record a Notice of Trustee Sale, scheduling a public auction of the delinquent homeowner's unit or home. The sale can occur in as little as twenty-eight (28) days. The notice is published weekly during that period. It must also be posted publicly, as well as on the property, within two (2) weeks prior to the sale. |
| August 15 | To stop the foreclosure during the five (5) day countdown to a scheduled auction, the homeowner can cure the default by paying all past due assessments and other fees, charges and costs. The association has the option of working out a payment arrangement with the delinquent homeowner. |
| August 30 (approximately 8 months after first delinquent assessment was due) | The foreclosure sale is conducted at a public auction in the county where the property is located. The sale is to the highest bidder who must pay in cash or a cash equivalent. If there are no bidders, the property may revert to the association. |
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