In the state of California, can a property be sold as a short sale without the HOA lien first being paid? The buyer is financing the purchase and there is a recorded HOA lien on the unit for unpaid monthly dues. The amount of the lien is $5,000. Can this property transfer title without the lien being paid? If the buyer is able to somehow close escrow assuming their bank makes the loan, does the lien follow the property or does it get wiped away? This is not a trustees sale, it is a short sale.
Answer
You can short sell it, but the property is still going to be subjct to the lien if the lien is not paid. The HOA would still have the right to foreclose the lien, and the buyer would have to pay to avoid losing the property.
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