The $125,000 HOA foreclosure purchase??!!!!
I have been following the recent trend of investors buying properties in the form of a HOA foreclosures. The final judgment may be as low as $1,000, but the final auction price would be in the tens of thousands. My research has shown there isn't a huge benefit to purchasing these, but someone must have a really good plan so I won't judge. However, just last week someone purchased one where the final judgment was about $4,000, but the final bid was a little over $125,000. Really? Can anyone tell me why someone would do such a thing? Unless they are preparing to pay off the mortgage company, what would be the benefit of this type of transaction?