How to buy a Foreclosed Condo, Owned by the Condo Association?

Question

Hello,

I am looking to buy a condo in my building where I am currently renting. It is a 2/2 with a great view, just completely gutted from the inside with no appliances or upgrades. Perfect! I figure I can fix it up and either sell it for way more than I bought it, or live in the remodeled unit myself.

Here's the problem:

The unit is owned by the condo association (I verfified this on the tax assessor's website). At the same time, the condo association cannot sell it because there is an existing mortgage in place with a bank. My guess as to what happened, piecing together the sparse info given to me by the building property manager, is that the condo got foreclosed on by the bank, the bank did not pay the monthly condo fees, and the association foreclosed on the unit. The property manager told me the unit is not for sale, because if they were to sell it to me, it wouldn't be a "clean sale". Meaning the bank would step in and re-possess the condo? She was very short with me and said it was complicated and would take hours to explain.

This is a great unit though, that I might be able to buy for extremely cheap and end up with a great value on my hands. I would like to do what I can to try and make a cash offer on it. What can I do here? Am I stuck? I looked on the tax assessor's folio page and beyond having trouble understanding it generally, I was unable to find any bank or mortgage info on the page. Any help?

Christopher Worster · Answer

Whatever become of this? I am encountering the same situation in Florida. Any info would be greatly appreciated!

Dave M. · Answer

Ok, I think I understand. It's confusing to me why someone would get foreclosed on by the COA, instead of their bank? If someone was having money problems it doesn't make sense to me how they would pay their mortgage, but not the cheaper condo fees and lose their property over $300 a month?

I think that if I were able to work out the mortgage situation with the former owner / bank, I would be able to get the condo association to sell me the unit. The reason for this is because the prop. mgr told me it would be nice to have more owners like me who want to renovate the unit and put some money into it. I have also been living in the building as a renter for about 3 years now, so I may have some cache.

Wayne Brooks · Answer

I you don't know how to find the info yourself, you need to order a title search from a title co. I think you're probably confused on the scenario, as that bank wouldn't have any claim. What is more likely is that the COA foreclosed on the owner, who had a mortgage on the property. That mortgage is still in place. Without the cooperation of the COA and the former owner, in that case, you can't even do a short sale, you'd have to wait for the bank to foreclose. To verify, get a title search, then of you want to proceed talk to a local RE attorney.

How to buy a Foreclosed Condo, Owned by the Condo Association?

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