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-   -   Buying a forclosure house (https://britishexpats.com/forum/trailer-park-96/buying-forclosure-house-865630/)

RICH Oct 6th 2015 3:13 am

Re: Buying a forclosure house
 

Originally Posted by Pulaski (Post 11765682)
The bank wasn't notified and dropped the ball (didn't notice). :eek: ...... I suspect the bank will sue the HOA for the value of the mortgage, so the HOA had better make sure they sell it for at least that much!

Is that realistic? Does the bank get a second crack? They instigated the action I suppose. and lost...

This is the scenario I was thinking about to nab the house next door from the bank!

Pulaski Oct 6th 2015 3:15 am

Re: Buying a forclosure house
 

Originally Posted by username.exe (Post 11765692)
:lol:

So, the owner just got fed up with getting whacked with HOA fees and presumably various fines for not doing whatever they wanted them to do?

Even so, this could turn out to be a lucrative business for a local HOA.
If they sell for a profit, what do they get to do with the funds? Are they under obligation to make that information publicly available?

For that to happen there have to be multiple points of failure.

If it was a vacation rental, I would say that the managing agent dropped the ball (did not pay, or did not notify the owner), or notified the owner, who failed to send payment.

I still think the bank will try to come after the HOA, though whether they would win in court may be a moot point as I doubt the HOA will have a deep enough pocket to fund a legal action they might lose when they're just fighting to keep a windfall gain. In other words the bank's lawyer may just intimidate the HOA into settling.

scrubbedexpat099 Oct 6th 2015 3:22 am

Re: Buying a forclosure house
 
First thing would be if the HOA charge is valid, maybe not.

RICH Oct 6th 2015 3:26 am

Re: Buying a forclosure house
 
If it makes a difference, it was not just the hoa fees delinquent, the mortgage was too, if it was not clear.

scrubbedexpat099 Oct 6th 2015 3:35 am

Re: Buying a forclosure house
 
HOA are not going to do that for $100.

RICH Oct 6th 2015 3:52 am

Re: Buying a forclosure house
 

Originally Posted by Boiler (Post 11765709)
HOA are not going to do that for $100.

I wouldn't do that for $100 either. (What are we talking about?)

scrubbedexpat099 Oct 6th 2015 3:58 am

Re: Buying a forclosure house
 
I thought the lien was $100 Duh

RICH Oct 6th 2015 4:12 am

Re: Buying a forclosure house
 
OK. The HOA lien for fees is an unspecified amount, presumably inferior to the $250k mortgage.

$100 I mentioned was the sale price at auction for the property last month.

edit - it was specified - about $6k

sir_eccles Oct 6th 2015 4:16 am

Re: Buying a forclosure house
 
In trying to find a link about hoa insiders being in on selling off houses cheap with hoa liens (which I couldn't find) I found a link about the superiority of liens. Hoa liens being quite superior apparently.

What happens to superior liens during foreclosure? • Mortgage Insider

Tarkak9 Oct 6th 2015 4:21 am

Re: Buying a forclosure house
 

Originally Posted by RICH (Post 11765679)
Odd thing. I am on the prowl for a disney villa to rent, and I dug up the address of the one Dad rented 10 years ago. Perusing the public records, it was apparently acquired last month at auction, by the HOA for $100 who had a lien for fees, and not the bank with the 250k mortgage... what can one make of that info?

It depends on (the) state laws and foreclosure laws. Many states, HOAs retain extremely senior rights to a property in its community, even over that of a bank (and basically are second to Tax on the totem pole). Therefore they do infact have the right to foreclose on the property for unpaid dues; because of that, all they have to do, like normal procedure, is notify subordinate interest holders of their foreclosure, but not be obligated to accept pay off of their lien from the junior position holders, who do run the risk of being s.o.l. (Bank). Often though, they will go ahead and be paid by the bank as its easier to get their owed funds that way rather than go through the foreclose procedures. There may also be state laws as to how much an HOA is allowed to capitalize from such sale after foreclosure. The bank probably will sue somebody, probably not the HOA because, afterall, it was a legit foreclosure and sale, but the foreclosed homeowner as they are still owed money from them by means of the deed of trust, so such judgement would probably continue to follow them rather than they be forgiven on the note. It would be very common to see bankruptcy in such extreme situations.

RICH Oct 6th 2015 4:35 am

Re: Buying a forclosure house
 

Originally Posted by Tarkak9 (Post 11765721)
It depends on (the) state laws and foreclosure laws. Many states, HOAs retain extremely senior rights to a property in its community, even over that of a bank (and basically are second to Tax on the totem pole). Therefore they do infact have the right to foreclose on the property for unpaid dues; because of that, all they have to do, like normal procedure, is notify subordinate interest holders of their foreclosure, but not be obligated to accept pay off of their lien from the junior position holders, who do run the risk of being s.o.l. (Bank). Often though, they will go ahead and be paid by the bank as its easier to get their owed funds that way rather than go through the foreclose procedures. There may also be state laws as to how much an HOA is allowed to capitalize from such sale after foreclosure. The bank probably will sue somebody, probably not the HOA because, afterall, it was a legit foreclosure and sale, but the foreclosed homeowner as they are still owed money from them by means of the deed of trust, so such judgement would probably continue to follow them rather than they be forgiven on the note. It would be very common to see bankruptcy in such extreme situations.

This is the most eye-opening thing I have read in a long time. Thank you.

RICH Oct 21st 2015 7:38 am

Re: Buying a forclosure house
 
A 100k house came up in my neighborhood for auction tomorrow - I just put in a $200 bid. So exciting!

Pulaski Oct 21st 2015 11:22 am

Re: Buying a forclosure house
 

Originally Posted by RICH (Post 11776161)
A 100k house came up in my neighborhood for auction tomorrow - I just put in a $200 bid. So exciting!

:fingerscrossed: :lol:

RICH Oct 21st 2015 5:14 pm

Re: Buying a forclosure house
 

Originally Posted by Pulaski (Post 11776272)
:fingerscrossed: :lol:

Sold for 80k to the bank. Serious bids started at 40k.

mrken30 Oct 22nd 2015 3:10 pm

Re: Buying a forclosure house
 

Originally Posted by Boiler (Post 11765714)
I thought the lien was $100 Duh

I had a $400 lien put on my house by a contractor. they ended up dropping the lien after we had both paid a few thousand in attorney fees.

This sort of stuff should really go through small claims. Welcome to America.

It's very easy to lien a property, and yes, some HOAs will put on a lien for $100


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