HOA Foreclosure - How to Win One?

11 Replies

Hi all,

An HOA foreclosed on a property and it is going to auction in a month or so. How does one acquire the property? The judgement is only for 7k. I'm assuming there's a first mortgage on the home that would need to be cleared as well. The owner also owes taxes that I've identified.

What is the pathway to potentially owning this home? It's an HOA foreclosure.


I understand this does not answer your question but it is an important factor I thought I would share since im currently in a situation with an hoa auction purchase.

Make sure you do a lot of Due diligence on it.Most county records are public information type in the parcel number most liens should appear. contact a title rep and see if they can dig a little into it. As for the mortgage I am not sure but I currently have a client that purchased thru an HoA auction and never negotiated the bank lien(loan) the property has been in default for 8 years  she still owns it bank has not foreclosed, but now due to the lien we cannot sell the house since the loan is underwater. about 150k. 

How do you buy hoa foreclosures by the way? im looking into other alternatives for purchasing as well as i currently do not qualify for conventional financing.

Originally posted by @Abe Alam :

Does one get the keys to the home when they buy the foreclosed home? Via an HOA auction?

 You don't get the keys perse, but will get a deed or certificate of title into your name.  This then gives you full ownership and can change the locks etc.  

You might want to do some digging on the 1st lien mortgage to get a handle on the total owing.  We get tapes of mortgages where oftentimes the total owing is double or triple the loan balance.   

Originally posted by @Abe Alam :

Let's say there's no 1st mortgage. Only an HOA Lien and a Tax Lien. What happens then?

Is the title free and clear if I win the HOA auction?

If that's the case then it will get bid way up.

Originally posted by @Abe Alam :

I’m not sure if it doesn’t have a 1st mortgage. It may. 

I'm just wondering if not, do I own the property free and clear? (AFTER paying tax and HOA off.)

 Yes if no other liens are present