The following timeline is a summary of the assessment collection/lien and non-judicial foreclosure process. In compliance with the requirements of the Fair Debt Collection Practices Act, the time period between the mailing of the "pre-lien" notice and the recordation of a Notice of Delinquent Assessment "Lien" is 30 days. The "pre-lien" notice is required pursuant to Civil Code Section 1367(a). Civil Code Section 1367(e) requires a minimum time period of 30 days between the recording of a Lien and the recording of a "Notice of Default" which starts the non-judicial foreclosure process. The minimum time period for the non-judicial foreclosure process is 90 days plus 21 days for publication as set forth in Civil Code Section 2924.

PRE-LIEN LETTER: Pursuant to California Civil Code Section 1367, a pre-lien notice is required to be sent to a member who is delinquent in the payment of membership assessments. This notice must include an itemized statement of the assessments, late charges and collection costs charged to the member's account and describe the procedures used by the association to collect delinquent assessments. The pre-lien notice must be mailed by certified mail, to all owners at their last known address and before the recording of a Notice of Delinquent Assessment "Lien". In order to comply with the requirements of the Fair Debt Collection Practices Act, the time period between the mailing of the "pre-lien" notice to the member and the recordation of a Notice of Delinquent Assessment "Lien" is 30 days.

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NOTICE OF DELINQUENT ASSESSMENT "LIEN": The Notice of Delinquent Assessment is commonly referred to as a "Lien". After receipt of a declaration from the association detailing the amount of delinquent assessments, late charges, interest and other necessary information, Sunrise will prepare for recording a Notice of Delinquent Assessment. A copy of the Lien must be sent by regular first class and certified mail, to the owners of the property to their last know address. This mailing must occur no later than 10 days from the recording of the Lien.

NOTICE OF DEFAULT: After the expiration of 30 days from the recording of the Notice of Delinquent Assessment and, absent receipt of payment of all amounts owed to the association, Sunrise will prepare a Notice of Default and Election to Sell. The official beginning of the non-judicial foreclosure process occurs when the Notice of Default is recorded with the County Recorder's office. At the time the Notice of Default is recorded, Sunrise will hire a title company to make a title search and provide a "Trustee's Sale Guarantee" (TSG). The TSG is a type of insurance policy which provides the trustee with certain information that is needed to properly conduct a non-judicial foreclosure and insures the homeowners association and Sunrise in the event the information is incorrect or incomplete. There are a number of parties entitled to receive a copy of the Notice of Default, and Sunrise will mail a copy of the notice by regular first class and certified mail to all parties requiring such notice within 30 days of recording the Notice of Default, pursuant to Civil Code Section 2924.

NOTICE OF TRUSTEE'S SALE: When the delinquency is not cured within 90 days from the recording of the Notice of Default and, after receiving authorization from the association, Sunrise will prepare the Notice of Trustee's Sale and begin the Publication process in accordance with Civil Code Section 2924. The Notice of Sale is published in a legal newspaper once a week for three consecutive weeks, and the notice is also posted on the property and in at least one other public location where the sale is to take place. This notice includes a description of the property, an estimate of the amounts owed to the association together with all other related fees and costs incurred (this total will be used for the opening bid), date, time, and place of the sale of the property. The parties who were mailed a copy of the Notice of Default will now also be sent a copy of the Notice of Sale. Any taxing agencies entitled to receive notice will also be provided with the same.

TRUSTEE'S SALE: The date of the Trustee's Sale is determined at the time when the Notice of Sale is prepared. Normally it will fall within 21-25 days after the end of the Pre-publication period, depending upon whether or not there are federal tax lien notification requirements. The exact date is also dependent upon the location of the Trustee's Sale and by the frequency of publication of the newspaper which Sunrise is required to use for that county. The sale is a public auction sale and is open to all bidders. Bids are made orally and each person wishing to bid must first show the auctioneer the amount and form of money which they intend to use in the event that they are the successful bidder. Only cash equivalents such as cash, cashier's checks etc. are permitted. Personal checks are not acceptable. The total amount must be paid the by highest bidder prior to the acceptance of the final bid. The association who is foreclosing doesn't need any money unless it wishes to bed more than the total debt, including trustee's fees and costs. If the association wishes to bid more, it mush also have enough money to pay the difference between the amount of its debt and the final bid. The sale is completed when the highest bid has been received and the auctioneer accepts that bid. POSTPONEMENT There are various reasons why a Trustee's Sale may be postponed. A bankruptcy, temporary restraining order from a judge, association authorized payment program or legal proceeding may prevent us from holding the sale on the scheduled date. The association and the homeowner may jointly request any number of postponements. However, there is a limit of three postponements by the association or Trustee, alone. State law requires publication of a new Notice of Sale when there are more than three postponements by the association of trustee. Each postponement must be scheduled to a definite future date. Once the date has been announced by the auctioneer, the sale cannot be held prior to that date.

TRUSTEE'S DEED UPON SALE: A Trustee's Deed Upon Sale will be prepared after the sale has been completed. The Deed is executed by Sunrise and sent to the County Recorder's office. After recording, it is then forwarded to the purchaser from the Trustee's Sale. There is no right of redemption after a Trustee's Sale and the purchaser is entitled to immediate possession. The one exception is the right of the Federal Government to redeem within 120 days if a Federal Tax Lien affects the property. No policy of title insurance is given to the party who becomes the owner at the Trustee's Sale. Normally, title insurance becomes involved when the property is subsequently sold or refinanced. Associations have found that it is nearly impossible to sell properties which they have foreclosed upon and taken title to because title insurance could not be obtained by subsequent purchasers without the association conducting a "quiet title action". A "quiet title action" is a judicial proceeding where a court is petitioned to "quiet" any claims from the previous property owner(s) who lost the subject property. If successful, insurable title will be obtained.