You may want to check the “Davis Stirling Act”. Also consider getting an Attorney. Have them check through the act to make sure your HOA is compliant with the law. Most HOAs are currently ignoring Davis Stirling, and this can really throw a wrench in their gears – particularly the aspects with auditing and financial records.
There are many questions as to the veracity of an HOAs authority to take possession of a property, but that authority does presently exist. I can not find any ‘minimum’ lien limit on when an HOA can start proceedings for a trustee sale at present. This means they can push a trustee sale on past dues of under $10k on a property worth $900k or more.
The Davis Stirling Act issues can temporarily place a roadblock on the Trustee Sale (ie, the HOA may have to start doing internal audits if their record keeping is not up to snuff – and the fact that they may have to do audits may place the Trustee Sale on hold because of questions on record keeping). This will not make anything that is owed the HOA go away. It is still owed. It is a tactic to gain time.
NOTE: Dues owed an HOA can accrue at 12% annually at a period of 30days after they become due. Considering that the dues are secured by your property, ie a secured debt, this is a high rate – and legal.
