Thread: HOA foreclosing... how does that work?

I'm not 100% sure of HOA liens, but they probably work similar to other types of lien/deed foreclosures, whereby you "own" the property, but the previous owner can still pay what is owed as long as its within a certain redemption period and retain ownership. Again, I'm not 100% sure, but this is how it works with many tax lien/deed foreclosures.

find a good real estate attorney in FL

Originally Posted by Red

find a good real estate attorney in FL

yup, got that in the list of things to do next time I go down there...

but hey, maybe some local like Cat Man Du could shed some light, given he's a local expert...

oh well, will find out on my own anyway, I already had a lawyer to talk to when I go to Tampa again.

RED .... can you jump in here and help out??

The problem is that there is NO single answer for this.

1. I am in the process of purchasing an apt. that the HOA foreclosed on.

The mtg. company agreed to deed the apt. to the association in lieu of their back owed maintenance fees + they had to rip out all of the drywall due to a mold issue. Neither the mtg. company or the association wanted to sink any more money into the unit for a rehab .... so they called me and offered it to me for $16,000 AS IS. Now I will rehab it ( $12,000 ) and resell it for $50,000. Good deal for me..good for the assoc. and good for the mtg. company, but this is just one scenario...there can others.

2. Some associations will foreclosure, but still honor the 1 st lien ...and even when selling it the mtg. company has to agree and recover some of their loss.

There are other answers as well.....maybe RED can help us out here!

I will talk to a lawyer next I get over there, not sure when that will happen though.

I smell the opportunities but want to move cautiously with these legal matters...

Cat, that sounds like a great deal.

The thing is, I can only advise on how it goes here in AZ... and the laws may be COMPLETELY different in FL. We are a non-judicial foreclosure state, where many states are judicial (therefore making foreclosure a more lengthy & expensive process).

But for what it's worth, here in AZ HOA's fall into one of two categories:

1) Condominiums (condos), in which the homeowners share proportionally in the ownership of the common areas, or
2) Planned Communities, in which the common area is owned by the HOA itself.

This distinction is important because it determines which state laws apply to the HOA and its homeowners. (I won't go into details here, plus, honestly, I would have to do more homework on that one, lol)

In Arizona, the HOA's lien for assessments, late fees, and reasonable collection fees may be foreclosed in the same manner as a deed of trust on real estate, HOWEVER, the HOA can only foreclose on your home if you are at least one year overdue on assessments, or if you owe $1,200 or more, excluding reasonable collection fees, attorney fees and late fees incurred.

Obviously, they CAN do it, but if there are lien holder(s) in place on the property and those liens in place are larger than what the home is worth, I don't see a reason that any HOA would spend money to foreclose and get nothing. Then again, if it's owned outright, why not?

I'm curious to see how FL does it, keep us posted, Andres

While we're on the subject.....

How does the Broward County Online Foreclosure Site Work?https://www.broward.realforeclose.com/index.cfm
I am a registered user, so I understand that part, but in order to bid and win, I am either confused or naive. for instance:

Auction Sold 06/02/2010 10:01 AM ET
Amount:$210,600.00
Auction Type:FORECLOSURE
Case #: ****
Final Judgment Amount:$816,081.71
Parcel ID: ****
Property Address:****
Just Value:$341,820.00
Plaintiff Max Bid:$470,000.00

Now in the rules section, it states "Disruptive bidding would be considered placing bids for less than the plaintiff’s high bid if that bid is shown". In the auction above (which was copy & pasted from the site) the winning bidder clearly paid less then the Plaintiff's max bid? How did they win? What is the Final Judgment Amount? What is the Just Value? What is the Plaintiff Max Bid? If I deposit $10, bid $100 on a property and win, is this possible? What else must I pay? liens and backtaxes. What about the mortgage? Is there a website for getting backpayments on the property?
HELP!

spencer... you suck.

Back to topic...

What I REALLY don't get is, if you win the auction at a $100 bid. That means you already put down the 5% deposit ($5.00)... do you actually get deed'd the house or Apt? or does the bank have the choice to keep the property if they do not accept the offer...