Request for Notice: Are Lenders Complying?

Under Civil Code Section 2924b(f), lenders are obligated to provide notice to the association that it has foreclosed on a property, provided that the association has first recorded a “Request for Notice” in the county recorder’s office.  In the Request for Notice, the association gives notice to all lenders that it wants to be informed of the change of title when a foreclosure sale occurs so that the association knows that it has a new property owner that will pay assessments from the date of the sale forward.  If a Request for Notice is recorded, a foreclosing lender has a duty to provide the association with a copy of the trustee’s deed upon sale  within 15 business days following the date of the trustee’s sale.  About the time our firm started to check with clients to see whether lenders are complying with this requirement, the Community Associations Institute sent a survey to its members making the same inquiry.  If you are receiving copies of trustee’s deeds from lenders after foreclosure sales in your community, please let us know.  If lenders are not complying, then it may be time for Section 2329b(f) to be amended so that there is a penalty for noncompliance.

Kathy Mills, Esq.

Address: 8220 University Ave #100, La Mesa, CA 91942

Phone Number:  +1 619-589-8800