Hi, I have bougth 3 properties at the Palm Beach FLorida Auction Sale. one of them did not have a HOA recorded but after I bought it and I called the HOA they said the balance was 15K then because I did't know better i sent a letter an try to negociate with them but finally I payied the 12K . question . what can i do better this time to protect myself of these like that. Can I buy title insurance in the courthouse as soon as I get the sale certificate. Will the title insurance protect me of hoa liens which werent recorded? is it there annother alternative to protect myself from these that i dont know about.
I do check official records, water liens etc . dont bid in cases where the hoa is the plantiff anything else i have to be aware off . Thank for the help
Nope, unrecorded HOA liens, and code violation liens, are always a risk. I always assume there is an outstanding HOA debt with a mtg foreclosure. Sometimes, they are not supposed to, but if you contact the HOA management co. they May give you an indication of outstanding, unrecorded fees. They don't have a great incentive to negotiate, since you now have a free and clear property, except the HOA debt, so they know they'll collect in full if they foreclose. With recorded liens, you of course have to add in additional dues after the lien recording, and $3-4k in attorney costs/court costs. Title insurance won't help, as any HOA fees would be an exception, without a clear estoppel from the HOA. I hope you did well, with the stiff auction competition here.
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