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How to Make the Most Out of AB 2273

October 16, 2012

One of the greatest challenges during this “economic tsunami” has been determining the contact information of the foreclosing party (usually the lender) so that the HOA can change owner information and begin billing the appropriate party. 

Once a foreclosure happens, the former owner’s responsibility to pay continuing assessments stops and the new owner (foreclosing party) must begin paying from the date of the foreclosure sale.

There are a number of things that must be done to assure accuracy. The accounting must be split into pre- and post-foreclosure periods.  The former owner has a legal responsibility to pay the pre-foreclosure amounts and we must treat the new owner (bank) as we would any other owner with the requisite notice requirements.

Up to this point, it has proven to be very difficult, if not impossible, to determine the status of a foreclosure sale and who the foreclosing party was.  Until now!!!!!

I am so pleased to be a part of an organization that advocates so strongly for HOAs despite opposition from special interest groups. CAI’s California Legislative Action Committee co-sponsored Assembly Bill 2273 (Wieckowski) with the Conference of County Bar Associations. That bill was signed into law by the Governor on September 7, 2012, effective January 1, 2013.

 Why are we so excited?  The bill accomplishes two things:

  1. It requires foreclosing parties to record a sale within 30 days of the sale;
  2. It shortens the time for foreclosing parties to notify association that they are the new owners, PROVIDED, the HOA recorded a “Request for Notice” prior to the property receiving a Notice of Default. If recorded, the foreclosing party must notify the HOA within 15 days after the sale. The prior law required such notification after the deed was recorded, which we all know could take years.

Attached is a recordable “Request For Notice” under Civil Code Section 2924b, which as stated above, MUST BE RECORDED IN ORDER FOR THE HOA TO BE ENTITLED TO RECEIVE THE RECORDED TRUSTEES’S DEED OR OTHER FORM OF DEED UPON SALE!!!!

Please note that a second page listing all units in the HOA by Parcel/Assessor’s Parcel Number as Exhibit A, must be attached to the notice and recorded in the County in which the properties are located.

A copy of the Deed will be sent only to the address named in the request. If that address changes, a new request must be recorded.

In conclusion, the only way this new law will NOT work for you, is if a Request for Notice is NOT recorded. Do it today so you can begin to derive the benefits of CLAC’s hard work by requiring a foreclosing party to do the right thing by notifying HOAs of a foreclosure sale and sending a copy of the new deed.

Janet Quinn Dennis is Owner of Pro Solutions and the Bay Area/Central Liaison to CLAC. She may be contacted at or

2 Comments leave one →
  1. Skip Daum permalink
    October 16, 2012 3:16 am

    Hooray for Janet! She gets it and has offered a simple fix. HOAs should record the Request for Notification on ALL parcel numbers in a “blanket recordation” ASAP as such recordation needs to occur prior to the NODs being recorded on parcels. (Some counties may have a similar form to use.) Skip Daum

  2. October 25, 2012 4:46 am

    You’re absolutely right Janet! Associations should record a simple “Request for Notice” listing ALL the community’s assessor parcel numbers in a single filing, so there’s only one filing fee. (County Recorders’ offices can help.) This way the HOA will know whom to invoice for assessments a mere 2 weeks after the foreclosure. (And, thanks for your support in getting AB 2273 passed!)
    Skip Daum

    PS: AB 2273 also requires EVERY foreclosure to be recorded within 30 days of the sale so HOAs should check in with the County regularly to identify the new owner, most likely a lender.

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