Go Back  British Expats > Living & Moving Abroad > USA > The Trailer Park
Reload this Page >

Buying a forclosure house

Buying a forclosure house

Old Oct 6th 2015, 3:13 am
  #16  
BE Irregular
Thread Starter
 
RICH's Avatar
 
Joined: Jan 2004
Location: Tampa Bay Florida
Posts: 4,467
RICH has a reputation beyond reputeRICH has a reputation beyond reputeRICH has a reputation beyond reputeRICH has a reputation beyond reputeRICH has a reputation beyond reputeRICH has a reputation beyond reputeRICH has a reputation beyond reputeRICH has a reputation beyond reputeRICH has a reputation beyond reputeRICH has a reputation beyond reputeRICH has a reputation beyond repute
Default Re: Buying a forclosure house

Originally Posted by Pulaski View Post
The bank wasn't notified and dropped the ball (didn't notice). ...... 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!
RICH is offline  
Old Oct 6th 2015, 3:15 am
  #17  
 
Pulaski's Avatar
 
Joined: Dec 2001
Location: Dixie, ex UK
Posts: 50,330
Pulaski has a reputation beyond reputePulaski has a reputation beyond reputePulaski has a reputation beyond reputePulaski has a reputation beyond reputePulaski has a reputation beyond reputePulaski has a reputation beyond reputePulaski has a reputation beyond reputePulaski has a reputation beyond reputePulaski has a reputation beyond reputePulaski has a reputation beyond reputePulaski has a reputation beyond repute
Default Re: Buying a forclosure house

Originally Posted by username.exe View Post


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.
Pulaski is offline  
Old Oct 6th 2015, 3:22 am
  #18  
Account Closed
 
Joined: Mar 2004
Posts: 0
scrubbedexpat099 is an unknown quantity at this point
Default Re: Buying a forclosure house

First thing would be if the HOA charge is valid, maybe not.
scrubbedexpat099 is offline  
Old Oct 6th 2015, 3:26 am
  #19  
BE Irregular
Thread Starter
 
RICH's Avatar
 
Joined: Jan 2004
Location: Tampa Bay Florida
Posts: 4,467
RICH has a reputation beyond reputeRICH has a reputation beyond reputeRICH has a reputation beyond reputeRICH has a reputation beyond reputeRICH has a reputation beyond reputeRICH has a reputation beyond reputeRICH has a reputation beyond reputeRICH has a reputation beyond reputeRICH has a reputation beyond reputeRICH has a reputation beyond reputeRICH has a reputation beyond repute
Default 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.
RICH is offline  
Old Oct 6th 2015, 3:35 am
  #20  
Account Closed
 
Joined: Mar 2004
Posts: 0
scrubbedexpat099 is an unknown quantity at this point
Default Re: Buying a forclosure house

HOA are not going to do that for $100.
scrubbedexpat099 is offline  
Old Oct 6th 2015, 3:52 am
  #21  
BE Irregular
Thread Starter
 
RICH's Avatar
 
Joined: Jan 2004
Location: Tampa Bay Florida
Posts: 4,467
RICH has a reputation beyond reputeRICH has a reputation beyond reputeRICH has a reputation beyond reputeRICH has a reputation beyond reputeRICH has a reputation beyond reputeRICH has a reputation beyond reputeRICH has a reputation beyond reputeRICH has a reputation beyond reputeRICH has a reputation beyond reputeRICH has a reputation beyond reputeRICH has a reputation beyond repute
Default Re: Buying a forclosure house

Originally Posted by Boiler View Post
HOA are not going to do that for $100.
I wouldn't do that for $100 either. (What are we talking about?)
RICH is offline  
Old Oct 6th 2015, 3:58 am
  #22  
Account Closed
 
Joined: Mar 2004
Posts: 0
scrubbedexpat099 is an unknown quantity at this point
Default Re: Buying a forclosure house

I thought the lien was $100 Duh
scrubbedexpat099 is offline  
Old Oct 6th 2015, 4:12 am
  #23  
BE Irregular
Thread Starter
 
RICH's Avatar
 
Joined: Jan 2004
Location: Tampa Bay Florida
Posts: 4,467
RICH has a reputation beyond reputeRICH has a reputation beyond reputeRICH has a reputation beyond reputeRICH has a reputation beyond reputeRICH has a reputation beyond reputeRICH has a reputation beyond reputeRICH has a reputation beyond reputeRICH has a reputation beyond reputeRICH has a reputation beyond reputeRICH has a reputation beyond reputeRICH has a reputation beyond repute
Default 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

Last edited by RICH; Oct 6th 2015 at 4:15 am.
RICH is offline  
Old Oct 6th 2015, 4:16 am
  #24  
Lost in BE Cyberspace
 
sir_eccles's Avatar
 
Joined: Mar 2010
Location: Phoenix, AZ
Posts: 8,106
sir_eccles has a reputation beyond reputesir_eccles has a reputation beyond reputesir_eccles has a reputation beyond reputesir_eccles has a reputation beyond reputesir_eccles has a reputation beyond reputesir_eccles has a reputation beyond reputesir_eccles has a reputation beyond reputesir_eccles has a reputation beyond reputesir_eccles has a reputation beyond reputesir_eccles has a reputation beyond reputesir_eccles has a reputation beyond repute
Default 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
sir_eccles is offline  
Old Oct 6th 2015, 4:21 am
  #25  
Boomshacalaca!!
 
Tarkak9's Avatar
 
Joined: Dec 2005
Location: South of the North Pole.......Colorado
Posts: 5,065
Tarkak9 has a reputation beyond reputeTarkak9 has a reputation beyond reputeTarkak9 has a reputation beyond reputeTarkak9 has a reputation beyond reputeTarkak9 has a reputation beyond reputeTarkak9 has a reputation beyond reputeTarkak9 has a reputation beyond reputeTarkak9 has a reputation beyond reputeTarkak9 has a reputation beyond reputeTarkak9 has a reputation beyond reputeTarkak9 has a reputation beyond repute
Default Re: Buying a forclosure house

Originally Posted by RICH View Post
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.
Tarkak9 is offline  
Old Oct 6th 2015, 4:35 am
  #26  
BE Irregular
Thread Starter
 
RICH's Avatar
 
Joined: Jan 2004
Location: Tampa Bay Florida
Posts: 4,467
RICH has a reputation beyond reputeRICH has a reputation beyond reputeRICH has a reputation beyond reputeRICH has a reputation beyond reputeRICH has a reputation beyond reputeRICH has a reputation beyond reputeRICH has a reputation beyond reputeRICH has a reputation beyond reputeRICH has a reputation beyond reputeRICH has a reputation beyond reputeRICH has a reputation beyond repute
Default Re: Buying a forclosure house

Originally Posted by Tarkak9 View Post
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 is offline  
Old Oct 21st 2015, 7:38 am
  #27  
BE Irregular
Thread Starter
 
RICH's Avatar
 
Joined: Jan 2004
Location: Tampa Bay Florida
Posts: 4,467
RICH has a reputation beyond reputeRICH has a reputation beyond reputeRICH has a reputation beyond reputeRICH has a reputation beyond reputeRICH has a reputation beyond reputeRICH has a reputation beyond reputeRICH has a reputation beyond reputeRICH has a reputation beyond reputeRICH has a reputation beyond reputeRICH has a reputation beyond reputeRICH has a reputation beyond repute
Default 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!
RICH is offline  
Old Oct 21st 2015, 11:22 am
  #28  
 
Pulaski's Avatar
 
Joined: Dec 2001
Location: Dixie, ex UK
Posts: 50,330
Pulaski has a reputation beyond reputePulaski has a reputation beyond reputePulaski has a reputation beyond reputePulaski has a reputation beyond reputePulaski has a reputation beyond reputePulaski has a reputation beyond reputePulaski has a reputation beyond reputePulaski has a reputation beyond reputePulaski has a reputation beyond reputePulaski has a reputation beyond reputePulaski has a reputation beyond repute
Default Re: Buying a forclosure house

Originally Posted by RICH View Post
A 100k house came up in my neighborhood for auction tomorrow - I just put in a $200 bid. So exciting!
Pulaski is offline  
Old Oct 21st 2015, 5:14 pm
  #29  
BE Irregular
Thread Starter
 
RICH's Avatar
 
Joined: Jan 2004
Location: Tampa Bay Florida
Posts: 4,467
RICH has a reputation beyond reputeRICH has a reputation beyond reputeRICH has a reputation beyond reputeRICH has a reputation beyond reputeRICH has a reputation beyond reputeRICH has a reputation beyond reputeRICH has a reputation beyond reputeRICH has a reputation beyond reputeRICH has a reputation beyond reputeRICH has a reputation beyond reputeRICH has a reputation beyond repute
Default Re: Buying a forclosure house

Originally Posted by Pulaski View Post
Sold for 80k to the bank. Serious bids started at 40k.
RICH is offline  
Old Oct 22nd 2015, 3:10 pm
  #30  
Lost in BE Cyberspace
 
mrken30's Avatar
 
Joined: Jul 2008
Location: Portlandia Metro
Posts: 7,390
mrken30 has a reputation beyond reputemrken30 has a reputation beyond reputemrken30 has a reputation beyond reputemrken30 has a reputation beyond reputemrken30 has a reputation beyond reputemrken30 has a reputation beyond reputemrken30 has a reputation beyond reputemrken30 has a reputation beyond reputemrken30 has a reputation beyond reputemrken30 has a reputation beyond reputemrken30 has a reputation beyond repute
Default Re: Buying a forclosure house

Originally Posted by Boiler View Post
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
mrken30 is offline  

Contact Us - Archive - Advertising - Cookie Policy - Privacy Statement - Terms of Service - Do Not Sell My Personal Information -

Copyright © 2021 MH Sub I, LLC dba Internet Brands. All rights reserved. Use of this site indicates your consent to the Terms of Use.