Received notice that lien on my home is being auctioned. Now what?

[drfernandombbs]

I have not paid my mortgage in nearly 2 years as I try to work out some sort of deal with the bank (BofA) using various help programs like HAMP, but I keep getting rejected. Amazingly, the bank has not yet foreclosed or auctioned my home or anything. It is just in limbo right now. I am still getting back on my feet after losing my job so I can use all the help I can get.

I stopped paying my HOA fees (townhome) about a year ago and they put a lien on my house for the amount I owe (nearly $10k).

Yesterday I got a notice in the mail from SBS Lien Services titled “NOTICE OF TRUSTEE’S SALE UNDER A NOTICE OF A NOTICE OF DELINQUENT ASSESSMENT AND CLAIM OF LIEN”. The letter goes on to mention me (the owner), the address of the property, and the claimant (the HOA). It then says that “said sale will be made…to pay the remaining principal sum…$10,300.00”.

There is a section titled notice to potential bidders that has a line “you will be bidding on the lien, not on the property itself.”

I am confused as to whether my home is being auctioned or just the HOA lien on my home of $10k. And if it is just the lien, why would somebody want to purchase the lien on my home? Can they sell my home or evict me or something? If it helps, I live in California. I can also post the entire letter if needed.

I am trying to ride out the process as long as possible before I have to move. All help is appreciated.

 

[FlyingRon]

It's the whole house. As far as YOU are concerned this is the same as if your bank had foreclosed (with the exception that you do have redemption rights on the HOA foreclosure which you don't with the bank). The confusing passage you are reading doesn't mean anything to you, it just refers to how the sale is conducted.

 

[nextwife]

Negotiations with one lienholder has no bearing on a different lienholder. I came across this in my work all the time. People erroneously believe they don't need to pay their second mtg if they are pursuing a mod with the first, or not the the HOA fee if the first is under mod review. The mod review by one lien holder does not mean the other lien holder should be ignored.