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Is California a super lien state? Can HOA take first position over the mortgage company?

  • October 01 2013 - Oakland
  • 0Yes

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Answers (2)

No, they cannot.
  • October 17 2013
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Hi,

Are you talking about a situation when a property is purchased? Or in the situation where HOA dues are not being paid?

In CA the first lien holder place is the government. Property taxes are the in the first lien holder position. Then the first mortgage lender, second, etc.  When you purchase a property, the lender will require that they be put in first position for the loan to be funded. Even in refinancing the primary lender will require that they are in first position, and then subsequent lenders after the primary lender. I have not heard of an HOA that has been able to actually be in first position. Also typically the HOA is not lending money to the owner the property, so therefore would not be recorded as such.

If HOA dues are not paid, the HOA does have the right to place a lien on the property. This is similar to the process of garbage liens, mechanics liens, etc that might be placed on the property. These liens if placed on the property do not displace the other liens already recorded on the property (taxes, mortgage).

Hope that helps!

Lisa Cartolano & Ellen Diamond
BRE 01715440
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  • October 16 2013
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