Sheriff sale foreclosure by HOA

9 Replies

I purchased a property at sheriff foreclosure by HOA and in the redemption period. The redemption period is up Aug 12, there are several liens on property but I've met with two attorneys and the said the sale will be final and worst case scenario is ill have a cloudy deed but a quiet title action will allow me to sale property at later date. Since the lien holder were served with paper regarding sale by firm representing the association I will be not held responsible for those liens. Feedback is greatly appreciated and valued. Thank you!

Not sure I understand your question. 

Getting title advice from the sheriff's office is not on my own list of "Top 100 Sources." 

In CA, a judicial foreclosure of a HOA lien means that any superior lien hold interest will remain. So, a deed of trust (what we use in lieu of a mortgage) will remain.

In order to wipe off a mortgage, your HOA lien would have to be in superior position, such as a 1st mortgage would be.

For further info, suggest you join CAJP and take the title training that Ward Hanigan  offers in San Diego. 

If you frame you question differently, perhaps you'll get the answer you seek.

We don't know what kind of "other liens" you mean.  If there is a mortgage, I think you had a bad choice in attorneys you spoke to, if you gave them the proper information.

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Good day,  I appreciate your time.  Before bidding I requested a title check from customer service at Lawyers title, they said there's a 1st mortgage for 247k started in 2006, nothing follows. I order a preliminary which it took days to get back (after the sale).  So I went with that information, I did trustee sales in AZ with that information and never had a issue.  Prior to sale I spoke with the levying deputy and she said the price includes any liens for this property, the proceedings took place and all parties were notified and had plenty of time to file but didn't. She also said, majority of the time the lender representatives buy these sales but in ca they'll have to be there or telephone days prior. So I took a risk, and now I'm trying to plan ahead and see how to capitalize or minimize my loss. On the preliminary it shows Us bank mortgage, association lien for 2k, another association lien court 7,187, and the last 109k from central district state of California. I called to find information and the courts referred me to the district attorney's office the owner owed a judgement. So when I took the took the prelim he looked at it and  said I'll have to wait until I get issued the deed but once I do most of the liens will fall off and whatever is left we then could do a quiet tile action. He Congratulated me and said come back in August... That was yesterday.  

After meeting with the lawyer I called different escrow offices I used in the past and one officer referred me to a company they have seen do similar sales tax liens and sheriff sales who cleared up cloudy titles or liens on properties, Tax title service. I reached out to them and pretty much said the same thing a the lawyer. They gave me a title company that would be able to get title insurance for the property. Could that work?

I was not aware that an HOA auction in Caly wipes out a first Mtg........still doubting it from what I read here, but I don't know Caly laws. HOA auctions are of course different than tax sale auctions.

Good evening,

I purchased a home during a HOA sheriff Foreclosure, after redemption period I was issued a Sheriff Deed. It had liens on it (child support, district court, hoa, which I was able to get them released) and it had a mortgage from 09/2006 And deed of trust said for 247,200. The mortgage is now being serviced by Ocwen but they will not talk to me about payoff. I called them everyday, faxed them my sheriff deed multiple times but they will not help. The old owner on the note did a quitclaim deed in 2010 and could not be located and she is off title but loan remains in her name. After many attempts I was told by Ocwen the payoff is 377k. I asked for details but they will not help. Any suggestions on bringing Ocwen or trustee US bank trustee to the table to get a payoff or demand to pay price indicated on deed if trust?? Thank you in advance!!

Sounds like you have your pay off number.  Not sure what other rights you have as a successor in in interest.  Not clear bout your question regarding "demand to pay price on deed of trust".  If you think you have the right to just pay the original balance, you are wrong.  Interest has been accruing, likely taxes and insurances, collection fees, etc.

Good morning,

      So Ocwen just took over the loan six 9 months ago. When the other loan servicing company filed to do a trustee sale the starting bid was 299k, then Ocwen took over the loan and canceled sale. So In 9 months of Ocwen took over they tacted on 78k?? Sounds a little inflated to me. May 2016 I bought the property and have been reaching out to Ocwen for payoff then and couldn't get a response or anything. I now have possession of the property and evicted previous owners. Now I'm waiting to move forward to either sell or rent the property out.