What We Do
ACCOUNT PROCEDURE
The recovery of delinquent assessments can seem like a time-consuming and lengthy process. Therefore, it is vital that community managers and the board members they serve have a general understanding of the non-judicial foreclosure process. The following outline represents the normal procedures and required documents for an account. Please note that taking these steps can lead to a potential foreclosure on the home.
All documents are sent with first class and certified mail.
This letter presents the total amount owed by the delinquent homeowner and includes assessments, late fees, interest and collection costs. Full payment is due within 30 days unless otherwise specified by the association.
When there is no response to Step 1, a Notice of Delinquent Assessment – Lien is sent.
This document secures the association’s monetary interest and begins protecting the association’s interest if the delinquent homeowner attempts to transfer title to a third party or files for bankruptcy. The lien also ensures, in most cases, that the total amount owed to the association will be paid as the property enters escrow and is sold.
After a 30-day statutory waiting period, UAR begins non-judicial foreclosure proceedings if the homeowner has not paid. Like a bank foreclosing on a deed of trust, associations can foreclose on a delinquent assessment lien.
The Notice of Default & Election to Sell is recorded and sent as a special mailing to ALL parties who show as having an interest in the property. This begins a statutory 90-day waiting period from the date of recording.
A Trustee Sale Guarantee (TSG) or property report is requested by UAR to confirm that all individuals and/or entities legally required to receive notice have been contacted. The TSG or property report lists all applicable encumbrances recorded against the property.
The 90-Day waiting period following the recording of the Notice of Default & Election to Sell has expired.
UAR contacts the association’s board members to obtain a signed Authorization to Publish, Post & Conduct the Sale form. This allows UAR to set a foreclosure sale and send the recorded Notice of Sale to the homeowner. The foreclosure notice is also published in a well-known local publication, like a newspaper, for at least three consecutive weeks prior to the sale date. The foreclosure notice is also posted at the property. This powerful step often convinces an otherwise non-responsive delinquent homeowner to contact UAR and arrange for payment.
Note: An association always can postpone up to 3 times or cancel the foreclosure sale prior to the sale. Please speak with a UAR manager for more information about this part of the procedure.
If homeowner has not paid the delinquent balance and there is no repayment plan in place, then the foreclosure may proceed. In this situation, there are two possible outcomes:
- The property is sold to a third party at auction with the starting bid equaling the total amount owing to the association in delinquent assessments, late fees and other related collection charges. From this, the association is awarded the delinquent assessments and the collection fees are paid. The new owner is then responsible to keep current with the association by paying assessments on time.
- If there are no postponements available and the there is no third-party purchaser at the auction, the foreclosure sale must be cancelled. The association should consult with legal counsel regarding their options to recoup the delinquent amount and collection charges owing on the account.
Each foreclosure is different.
Note: The original homeowner or the first deed of trust holder has 60 days from the date of the foreclosure sale to redeem the property.