there is no equity left in the property. The house is will not sell for more than $ 60,000 less than owned on the property.
It is in CA.
The Bank can foreclose whenever someone stops paying for a mortgage they said they would pay. Time frames depend on each bank and how soon they start the process…typically its 3-4 months after the homeowner stops paying. Check out CA state laws regarding the foreclosure process. You have to sell using the short sale method. Find a Realtor in CA that KNOWS how to do a short sale and get it listed and you might be able to save yourself from foreclosure.
Yes, the HOA can put a lien on the property and if the lien is not paid, the HOA can foreclose.
Will they do so when the property is upside down? I don’t know. They might. I suspect that if they foreclose the bank holding the first would be forced to take over.
The mortgage holder is not foreclosing; that would be because the property is upside down. I assume that the HOA is foreclosing because of unpaid HOA fees and dues. The mortgage will require that those be paid or the bank can call the loan. The bank is hoping to ignore the unpaid HOAs because they don’t want the property back. However, if the HOA files, the bank will have to do something.
Sometimes what the bank does for unpaid HOA and property taxes is that they will pay them and add it onto the motrtgage. Will they do that here? I sure don’t know.
If you are the one wiith unpaid HOA fees and HOA fines, make your life easier and just pay them.
If you are the hopeful buyer, I suspect that all you can do is wait and see.