HOA delinquencies become liens on your property — and in California, HOA liens can foreclose just like a mortgage. Jay Buys Houses buys Long Beach homes with HOA delinquencies and pays off the entire balance from closing proceeds. You never write a check before closing.
Unpaid HOA dues plus penalties and collection fees become a lien on your property. These liens are paid at closing just like a mortgage payoff — you don't need to pay them upfront to sell. The HOA balance, late fees, and attorney's fees are obtained and paid by the escrow company at closing from your proceeds.
In California, HOA liens on condominiums can have 'super-lien' priority over all but the first mortgage. This means an HOA foreclosure can potentially wipe out a first mortgage — which is why lenders take HOA delinquency so seriously. Cash buyers have no lender to satisfy, which simplifies the transaction.
California HOAs can initiate non-judicial foreclosure for delinquencies above certain thresholds. The process can complete in as little as 150 days from the first notice. Unlike mortgage foreclosure, HOA foreclosure cannot be stopped by bankruptcy. Selling before foreclosure completes is the only effective exit.
We buy Long Beach homes with HOA delinquencies regularly — both single-family homes with nominal HOA arrears and condos with significant special assessment delinquencies. The process is straightforward: we get the full payoff amount from the HOA, it's paid at closing, and you receive whatever equity remains.
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