I am looking at a property on Homesearch.com and I have done some research to find out who the lien holders are. I see that there is a HOA lien and two mortgagors. The first mortgagor has already foreclosed on the home, and the court recently issues a COT. The HOA filed liens on 2/18/2007, 2/28/2008 and 12/08/2011 . The bank filed their Lis Pendens on 5/23/2008 and received summary final judgment on 9/23/2008 for 335k. The house was sold for $390 back in 2005. So I assume this is the 1st mortgagor that is foreclosing, but it could be the second, I really don't know. The house is worth about 220k now. The second mortgage has a balance of 85k. HOA liens are about 12k.
My questions are :
1. If I win this bid at auction from Nationstar who is selling it, will they pay off the second mortgage, and the HOA liens, in order to grant me a SWD or equivalent ?
2. Why didn't the HOA foreclose first ? Many HOA's in Florida do this all the time, and get paid at the courthouse.
3. If I win the bid and take possession of the house, will the second mortgage or HOA then foreclose on me at a later time ?
I read a little something bout this subject the other day on BP.
Way to many moving parts and didn't sound like a good Idea
Why do investors buy HOA liens at auction?
You must be a BiggerPockets member to post on the forums
Join the world's largest, most open Real Estate Investing Community online, 100% free forever!