Homeowners Now Own This

In an unprecedented action, Edgewater Isle has completed a foreclosure on a unit.

On April 26, 2011, the Master Association foreclosed on 2021 Vista Del Mar, a one-bedroom unit purchased by the homeowners in 2005 for $450,000. Public records show that the purchase was 100% financed (i.e., the homeowners did not have a down payment) and that both North and Master associations pursued the homeowners who had not paid dues in several years.

Public documents were recorded as follows:

Date Activity Amount
October 14, 2005 Deed and Deed of Trust recorded (i.e., they purchased the condo)
February 6, 2007 Master Association records lien for unpaid HOA dues $1,548
April 9, 2007 North Association records lien for unpaid HOA dues $2,899
May 29, 2007 North Association records lien for unpaid HOA dues $3,764
August 16, 2007 HOMEOWNERS FILE CHAPTER 7 BANKRUPTCY
(All 2007 recorded HOA liens are wiped out in bankruptcy court)
 
July 8, 2008 Master Association records lien for unpaid HOA dues $1,754
August 31, 2009 Master Association records lien for unpaid HOA dues $3,024
March 24, 2011 Master Association records lien for unpaid HOA dues $8,952
April 26, 2011 Master Association receives Certificate of Foreclosure Sale $8,325
August 2, 2011 Master Association receives Trustee's Deed Upon Sale  

During this same time, there are also other recordings of default not related to the homeowners association in addition to the homeowners' bankruptcy filing.

Experts in this foreclosure process told us that during the 90-day period after the Certificate of Foreclosure Sale is issued, the Master Association cannot do anything with the property as the homeowners have the right of redemption (i.e., buy the property back). After 90 days, title will be issued in the Master Association's name, and the Master Association can evict the homeowners and sell or rent the unit as they decide. The mortgage remains the responsibility of the homeowners, and the mortgage holder can then foreclose on the Master Association to regain title of the property. The Master Association does not have a credit rating and likely will not care if the Association is foreclosed upon. But will it even get that far? Time will tell.

Certificate of Foreclosure Sale

Homeowner Has a 90-Day Right of Redemption

Certificate of Foreclosure Sale, Subject to Redemption. Edgewater Isle Master Associaiton HOA forecloses

Deed Upon Sale

This document finalizes the transfer of title to the Edgewater Isle Master Association.

Edgewater Isle Master HOA foreclosure

Edgewater Isle Master HOA foreclosure

Homeowners: You Now Own This

Each homeowner in the Master Association has an 1/416th interest in 2021 Vista Del Mar, complete with all sorts of "Notice of Default" and other related documents stuck and stapled to the walls and windows.

2021 Vista Del Mar has been foreclosed by Edgewater Isle Master Association

2021 Vista Del Mar is vacant or abandoned

2021 Vista Del Mar is managed by Chase Home Finance

Who's To Blame?

In the bigger picture, there is a lot of blame to go around.

In this case, this condo was 100% financed, and the homeowners never had any equity. Prices have tumbled since the homeowners bought this unit. Currently (May 2011) a 1 bedroom is listed for (short) sale for $260,000, which is a decline of 42% in value from what the homeowners here paid.

The boards hold responsibility in this mess for failing to control dues.

The banks hold responsibility in allowing these 100% financed deals.

And finally, these homeowners hold responsibility: to buy a condo and not make HOA dues payments FOR YEARS is irresponsible. Most who find themselves in an untenable financial problem would sell the condo and move on. Why didn't they?

 

UPDATE: 8/22/2011

The Edgewater Isle Master Association now has title to the condo. The Association can rent the property, probably on a month-to-month basis, and while awaiting for the condo's lender to foreclose on the Master Association to regain title. The lender will then sell the property. The unit is vacant, so an eviction proceeding is not necessary.

UPDTE: 7/20/2013

Last month (June 2013), the Master Association listed this condo for rent at $2,500. (And just for fun, let's count the typos and miscapitalized and/or incorrect words and/or incomplete sentence and/or incorrect punctuation in red):

Exceptional Waterside Condo

2021 Vista Del Mar This lovely waterside condo is near to restaurants, many shopping centers, Hillsdale shopping Mall, supermarkets, schools, freeways, Cal Train station, as well as parks, bike trails, and nature. This spectacular one bedroom, one bath at the Edgewater Isle condominiums. Ceramic tile entry, leads to an open dinning area. Kitchen features double oven with bottom self cleaner, range hood with fan, garbage disposal, dishwasher, water for ice maker, ceramic countertops, double sinks, vinyl flooring, luminous ceiling. It is located in a bright sunny area with a very large sundeck balcony. A green lawn that leads to a vista of open wide water. The complex offers a pool, and a clubhouse.

2021 Vista Del Mar rental listing

 

A clubhouse? Really? Where is it? Also gotta love the "double oven." No such thing in the photos. And aside from that: a rental listing with someone who fails to write English at the 8th-grade level.

During the two years that the Master Association has owned this condo, the Master Association failed to pay North dues. When the Master finally caught up with its payments this past spring, the Master Association believed they did not have to pay late fees or interest that would be required of — demanded even — of any other owner. This, while the Master Association sues other owners and adds plenty of junk fees to their small claims cases yet belives the same rules don't apply to them.

UPDATE: September 24, 2013

The North Association filed a small claims case against the previous owners (Andrew Limcaco and Jennifer Limcaco) for unpaid dues of $5,000. The hearing is scheduled for November 13, 2013.