i put in an upset bid on an HOA foreclosure and after pulling a title search, its got too much hair on it for me to move fwd. If i dont get outbid (fingers crossed), i have to fork over $7k. My first question is: can i just forfiet my $750 deposit? Or will someone force me to execute the foreclosure? Also, the house is worth $165k and the 1st DOT is $135k. Taxes are not past due nor is P+I. What happens if i move fwd and the old owner keeps paying his mortgage? Can i get a loan and payoff thier mtg and kick them out? It may be worth the trouble, but dont want to get in over my head. Help!.... Thx
I'm not sure about the laws in NC, but this isn't a bad strategy.
First, if the aren't paying the HOA, then they aren't paying the mortgage either, so you don't know how much the additional penalties are. You are the deed holder, so you can start eviction even though the first mortgage is in place. You don't have to pay that off to start the eviction process.
Yes, you can refinance the property and pay off the first mortgage, or you find out (through the borrower) how much is owed and then simply pay the mortgage as if it was yours. (Some call it taking the property "subject-to" keeping the exiting loan in place.) Or you can rent out the property while you wait for the first mortgage to foreclose.
Join the Largest Real Estate Investing Community
Basic membership is free, forever.