Davis-Stirling: Foreclosure Notice Requirements are Strictly Construed

  The Sixth Appellate District holds that the pre-foreclosure notice requirements of the Davis-Stirling Common Interest Development Act must be strictly construed to create a valid lien. Only valid liens may be recorded and subsequently foreclosed by the association. The case is Diamond v. Superior Court (Casa Del Valle Homeowners Association). The notice and procedural requirements can be found in Civil Code sections 1367.1 and 1367.4 and are summarized here.  Continue reading

Failure to Provide Notice of Redemption Rights May Void HOA’s Nonjudicial Foreclosure

  In Multani v. Witkin & Neal [See, also Multani v. Witkin & Neal Order Modifying Opinion (No Change in Judgment)] the Court of Appeal was presented with a question of first impression. Does a homeowner’s association’s failure to comply with the requirements of Code of Civil Procedure section 729.050, i.e., the associations failure to notify the owner of its redemption rights, sufficiently prejudiced an owner such that the owner can state a cause of action to set aside the foreclosure sale? Continue reading

Trustee’s Mistake in Opening Bid Amount Justified Refusal to Deliver Deed

  Nonjudicial trustee foreclosure sales are regulated by statute. The result is that, so long as the statutory scheme is strictly followed, trustee sales are final and cannot be undone. Procedural irregularities in the statutory foreclosure process coupled with an inadequate sales price may, however, allow the trustee to exercise discretionary authority to void the sale if the error is discovered prior to delivery of the deed. Continue reading