Bird Rock v. Breaking Ground: HOA Foreclosure Bids (CA)

Quick Answer

In Bird Rock Home Mortgage, LLC v. Breaking Ground, LP (Cal. Ct. App., 4th Dist., Div. 1, No. D084138, filed September 16, 2025), the court held that the extended bidding period in Civil Code section 2924m applies to nonjudicial foreclosure sales of homeowners association assessment liens. When the winning bidder at the auction is not a person who will occupy the home, the sale is not final immediately, and eligible bidders get a further window to bid. Boards and their foreclosure counsel should confirm they are following this process.

Facts

After an association's nonjudicial foreclosure, Bird Rock Home Mortgage was the high bidder at the initial sale with a $60,000 bid. The trustee held the sale open under section 2924m, and Breaking Ground submitted a $203,000 bid during the extended period. Bird Rock argued that section 2924m does not reach association lien foreclosures. The trial court disagreed, and the Court of Appeal ruled against Bird Rock.

What the Court Held

• Section 2924m applies to association assessment foreclosures. Summaries of the opinion report that the court found the statutory scheme requires the trustee to comply with the extended bidding procedure.
• No conflict with Davis-Stirling. The court found no conflict between section 2924m and the Davis-Stirling Act provisions on nonjudicial foreclosure.
• Interplay with redemption. Adams Stirling PLC reports that the court said the extension operates alongside Civil Code section 5715, so the 90-day redemption period begins only after a qualified bid is submitted in the extension period. Confirm this point against the opinion.

Sources describe the length of the extended window differently, so check the statute itself on the official California site and ask your attorney which deadlines apply.

Why It Matters to Associations

Associations rarely want to own units, but they want a clean, final sale that recovers the debt. A sale that is not final for weeks changes timelines, accounting and communications with the former owner. A higher bid in the extension period can also increase the amount available to pay the debt.

Board Checklist

• Ask your foreclosure counsel and trustee how section 2924m is handled in your sales.
• Update foreclosure timelines in your collection policy.
• Confirm that all required prerequisites for foreclosure were completed, including the board vote required by the Davis-Stirling Act.
• Keep records of notices and bids.

See our assessments guide and the California HOA legal guide.

How APM Helps

APM coordinates delinquency notices and works with association counsel on lien and foreclosure steps. See our California resources or contact us.

Source: Bird Rock Home Mortgage, LLC v. Breaking Ground, LP (Cal. Ct. App., 4th Dist., Div. 1, 2025), as summarized by Adams Stirling PLC and Epsten APC.

This article is general information, not legal advice. Court summaries are based on the published opinion and law-firm case summaries; read the opinion and consult your association's attorney before relying on it. Last verified October 24, 2026.