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Pre-Lien Notice of Delinquent Assessment (Lien) Serve BOD Decision to Foreclose Notice of Default Notice of Sale Trustee's Sale Conducted Homeowners Right of Redemption Trustee's Deed
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PRE-LIEN LETTER: Pursuant to California Civil Code section 5660, a pre-lien notice is required to be sent to a member who is delinquent in the payment of membership assessments. This notice must include an itemized statement of the assessments, late charges and collection costs charged to the member's account and describe the procedures used by the association to collect delinquent assessments. The pre-lien notice must be mailed by certified mail, to all owners at their last known address and before the recording of a Notice of Delinquent Assessment "Lien". Before recording the lien, the association must offer alternative dispute resolution ("ADR") to the owner, and if the owner agrees, the ADR must be completed before a lien can be recorded.

NOTICE OF DELINQUENT ASSESSMENT (LIEN): The Notice of Delinquent Assessment is commonly referred to as a "Lien". If the homeowner does not respond to our pre-lien notification, Sunrise may prepare for recording a Notice of Delinquent Assessment. At this point, before a Lien can be prepared, the Board of Directors must vote in an open Board meeting to "Lien" the delinquent owners' property and that vote must be part of the official minutes for the Association. The Lien is then recorded and a copy of the Lien is sent by certified and first class mail, to the owners of the property at their last known address. This mailing must occur no later than 10 days from the recording of the Lien.

NOTICE OF DEFAULT: The Board of Directors must vote in an "Executive Session" to "Foreclose" on the delinquent owners property and offer alternative dispute resolution ("ADR") to the owner. If the owner agrees, the ADR must be completed before a Notice of Default can be recorded. In addition to these requirements, the account must be delinquent $1,800 or more than 12 months past due. Per California Civil Code Section 5705(d), the homeowner(s) must be served with the Board's Decision to Foreclose if they occupy the property. Absent a payment plan or receipt of payment of all amounts owed to the association, Sunrise will prepare a Notice of Default and Election to Sell. The official beginning of the non-judicial foreclosure process occurs when the Notice of Default is recorded with the County Recorder's office.

At the time the Notice of Default is recorded, Sunrise will obtain a "Trustee's Sale Guarantee" (TSG) from a title company. The TSG is a title guaranty, which provides the trustee with certain information that is needed to properly conduct a non-judicial foreclosure and guarantees the homeowners association and Sunrise in the event the information is incorrect or incomplete. There are a number of parties entitled to receive a copy of the Notice of Default, and Sunrise will mail a copy of the notice by first class and certified mail to all parties requiring such notice within 30 days of recording the Notice of Default, pursuant to Civil Code Section 2924. In addition, per California Civil Code Section 57109b), the homeowner(s) must be served a copy of the Notice of Default.

NOTICE OF TRUSTEE'S SALE: When the delinquency is not cured within 3 months from the recording of the Notice of Default and, after receiving authorization from the association, Sunrise will prepare the Notice of Trustee's Sale and begin the Publication process in accordance with Civil Code Section 2924. The Notice of Sale is published in a legal newspaper once a week for three consecutive weeks, and posted on the property and in at least one other public location where the sale is to take place. This notice includes the date, time, and location of the sale, a description of the property, an estimate of the amounts owed to the association together with all related fees and costs incurred. The parties who were mailed a copy of the Notice of Default will now also be mailed a copy of the Notice of Sale via first class and certified mail. Any taxing agencies entitled to receive notice will also be provided with the same.

TRUSTEE'S SALE: The date of the Trustee's Sale is determined at the time when the Notice of Sale is prepared. Normally it will fall within 21-25 days after the end of the Pre-publication period, depending upon whether or not there are federal tax lien notification requirements. The exact date is also dependent upon the location of the Trustee's Sale and by the frequency of publication of the newspaper which Sunrise is required to use for that property.

POSTPONEMENT: There are various reasons why a Trustee's Sale may be postponed. A bankruptcy, temporary restraining order from a judge, association authorized payment program or legal proceeding may prevent us from holding the sale on the scheduled date. The association and the homeowner may jointly request any number of postponements for a period not to exceed one year. State law requires publication of a new Notice of Sale when if the postponement exceeds one year. Each postponement must be scheduled to a definite future date. Once the date has been announced by the auctioneer, the sale cannot be held prior to that date.

SALE CONDUCTED: The sale is a public auction sale and is open to all bidders. Bids are made orally and each person wishing to bid must first show the auctioneer the amount and form of money which they intend to use in the event that they are the successful bidder. Only cash equivalents such as cash, cashier's checks etc. are permitted. Personal checks are not acceptable. The total amount must be paid the by highest bidder prior to the acceptance of the final bid. The association who is foreclosing doesn't need any money unless it wishes to bid more than the total debt, including trustee's fees and costs. If the association wishes to bid more, it must also have enough money to pay the difference between the amount of its debt and the final bid. The sale is completed when the highest bid has been received and the auctioneer accepts that bid. Sunrise will prepare and record a Certificate of Sale.

REDEMPTION PERIOD: An owner will have a 90 day redemption period after the foreclosure sale to pay the debt and take back title to his/her home. A Notice of Redemption will be mailed by certified and first class mail to the home owner.

TRUSTEE'S DEED UPON SALE: A Trustee's Deed Upon Sale will be prepared after the sale has been completed and the 90 day redemption period has ended. The Deed is executed by Sunrise and sent to the County Recorder's office. After recording, it is then forwarded to the purchaser from the Trustee's Sale.

BANKRUPTCY: Upon receipt of a bankruptcy notice or information regarding a bankruptcy filing, Sunrise will verify the filing and key dates for proof of claim filing, meeting of creditors and other important dates and events that may affect the Association. Sunrise also offers additional services including but not limited to: proof of claim filing on behalf of the Association, monitoring for plan confirmation, objection(s), discharge or dismissal, pass-through trustee payments and motions for relief from stay.