TAX deed properties and HOA's in California & Washington

12 Replies

I have been searching for a definitive answer regarding the clearing of past due HOA liens and fees for tax deed/sale properties in California and Washington state.

My question is: Are the HOA dues and leins cleared like a mortgages in a tax deed scenario?

Has anyone bought a tax deed property in an HOA that had back dues or liens? Any insights or specific experiences are greatly appreciated.

I have bought them in CA and this was years ago.. but they were extinguished laws may have changed I know Nevada has some action going on HOA's recently.

When I bought foreclsoures in Oregon the HOA would always try to collect but we refused and never did have to pay any of the back fee's just our fee's going forward.

Thanks Jay,

I have bought 15 properties at Tax foreclosure sales and I've done pretty well with my buys. I have shied away from properties with large HOA liens or back dues because I was unsure of what legal leverage the HOA may have on the title of the property. I have passed on a few promising properties because without this information I couldn't make an informed decision. Also most HOAs have refused to provide me with the total amount of their back dues Since (prior to the auction) I was not the owner of the property. Do you or anyone have any attorney referral for Quiet title actions and HOA issues?

Check with the county dept that handles the sales. Fl. and Texas HOA fees have to be paid if the respective counties force the issue. Contact me at [email protected] and I will help you with your quiet title problem. I am not in my office right now to look up the contact that handles such issues.

@Sarah Becker  

your in CA correct? laws as you know regarding tax sales are state specific, you should simply talk to your title co.. and or the title officer at a title company they will be able to tell you in very short order if the TAX sale wipes out HOA's in CA.. In my experience buying tax sales in CA it did.. But that was years ago ...

@Boyd McClean In FL the HOA debt stays with the property. The county tax collector has no say so in the matter.

As Jay says, it's state specific. 

In CA, real property sold at tax sale are super priority and wipe off most all other secured claims, including trust deeds, judgments and HOA liens, with the only exception being claims to the Federal government and a few odd local government liens that you may run into.

It sounds like you've had some success buying in past. Most other successful buyers develop an expertise in a certain state and focus their energies accordingly. 

There's also darn good money working the surplus funds side and, of course, deceased owners. 

I'm trying to remember when I last drove thru or flew near Brown City. Pretty area.

@Rick H.  

  From the feedback I get these days the counties are getting kind of prickly on the overages claims by un related third parties.

And that was what I thought I did not think anything but IRS or State tax liens survived a CA Tax sale. and the only way to unwind one was to prove that public notice was botched in some way. ( which happened to me one time)

This post has been removed.

Originally posted by @Wayne Brooks :

@Boyd McClean In FL the HOA debt stays with the property. The county tax collector has no say so in the matter.

 Hi Wayne,  just thought I would share this as example:

I know this is an older post, but wanted to help in case someone else comes across this situation. I'm trying to find the answer for California if anyone knows.

@Jay G. You are absolutely right on that, no I was mistaken. I had Foreclosures on my mind with this for a while.  I tried to correct the misquote on threads I recognized.

It is generally the case that property taxes have priority over all other liens. You always have to be wary of exceptions, and read that statute carefully to make sure there is compliance by the county, etc, but in general most tax liens are going to wipe out hoa dues. Most super priority HOA statutes put them in front of a first mortgage, but the condo declaration is still subsequent in time to the tax man.