Recently I have noticed some HOAs recording Notice of Defaults (NODs) here in California. And, this is without a NOD from the lender on the unit. Could it be that people are not paying their HOA dues but continuing to pay their mortgage OR that the lender is holding off on recording the NOD.
My understanding is that after a property is foreclosed, the HOA lien may extinguish. However, I have seen a situation where the lender had to pay off the HOA lien before closing escrow with the new buyer. Has anyone had a situation with a NOD from the HOA and if so, how was it handled in regards to a short sale?