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Foreclosure Remedies Under the DavisāStirling Act
By Jeffrey A. Beaumont and Kyle Meade
This article first appeared in ourĀ Communicator Magazine, Summer 2025 Edition.
California law underĀ Civil Code Sections 4000 et seq. grants homeā owners associations (HOAs) the ability to recover delinquent assessment payments through foreclosure. There are two types of foreclosure available: judicial and nonjudicial. Each has its own procedures, advantages, and disadvantages. This article outlines the requirements for handling both judicial and nonjudicial foreclosure, compares and contrasts their respective processes, and highlights factors for boards to consider when choosing a foreclosure type.
JUDICIAL FORECLOSURE PROCEDURE
Judicial foreclosure involves filing a lawsuit in superior court to obtain a court order authorizing foreclosure, and potentially to secure a personal money judgment against the property owner. To initiate this process, an HOA must first send a preālien letter to the delinquent owner via certified mail. This letter out...