HOA/COA foreclosures in Texas

[Freya Wright]

Hi! I'm new to investing. I've noticed an increase in Home Owners Association/Condo Owners Association foreclosures in the DFW market. I was wondering if it would be a good idea to attempt to purchase a home/condo through this route or if the process would be too complicated for a newbie like me :).

Any feedback would be greatly appreciated.

Thanks!

Freya

[Bruce Lynn]

Check for primary liens....the HOA liens could be worthless if there are other mortgages or liens on the property.

Saw some in Central Texas recently HOA dues on lot were something like $1000/year. 300-400 lots for sale in the neighborhood....so might be tough selling them even at a big discount. If it takes 3-4-5 years to sell it....or longer, you might just be buying a big liability vs an asset.

Saw some others near San Antonio before Christmas.  No water to them, water company won't tap new meters because they don't have enough water.  They were 1/4 acre lots and you have to have at least 1acre to drill a well.

So be careful out there.