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Articles Tagged with Assessment Liens

Foreclosure on Homes by HOAs

February 1, 2024 | by Christopher Hewitt

Throughout the United States, an increasing number of people complain about corruption stemming from the homeowners’ associations (HOAs) their homes are a part of. Some HOAs are increasing fees so fast that homeowners can’t keep up with their HOA payments. Others have been accused of laundering the money from the HOAs they preside over for their benefit. An even more alarming trend is emerging: having your home foreclosed on by an HOA with minimal warning and for a minimal amount of unpaid HOA fees.

Luckily, in California, there are laws to protect homeowners from an HOA foreclosing on their home. However, it is essential to understand the laws and ensure you protect your investment and your family home. As a bankruptcy attorney, I have dealt with these kinds of issues. Having been in the business of helping clients avoid foreclosure, I have seen all sorts of different methods banks, lenders, and HOAs may use to foreclose on your home.

In California, the laws governing HOAs and their ability to foreclose on properties are outlined in the Davis-Stirling Common Interest Development Act. This Act provides a comprehensive legal framework for managing and operating common interest developments, including HOAs, in California. Here are critical aspects of these laws as they relate to HOA foreclosures:

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How does debt consolidation affect credit scores?

Initially, it might cause a slight dip due to credit inquiries. However, consistent payments can improve your credit score over time.

What is the difference between debt consolidation and debt settlement?

Debt consolidation involves taking a new loan to pay off debts, while debt settlement is negotiating to pay less than you owe. Settlement can negatively impact your credit score.

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Is debt consolidation right for me?

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How do Chapter 7 and Chapter 13 bankruptcies in California differ?

Chapter 7 involves liquidating assets to pay off debts, while Chapter 13 allows debt restructuring over a set period, usually three to five years.

Can my spouse's bank account be garnished for my debt?

Bankruptcy laws offer protections against such actions, but specifics depend on individual cases and state laws.

How can I learn more about my options?

Consulting a California bankruptcy attorney can provide clarity. Firms like The Law Offices of Christopher Hewitt offer free consultations to explore debt relief paths.