Foreclosure auctions

2 Replies

Hi all. First off, thanks in advance for any info you can offer.
I am located in California and just learning about foreclosures. Here's an example property I need help understanding.

Condo for sale: auction price starting at 3,000 for 3 yrs of unpaid hoa fees. Mortgage of 180,000 on the place is up to date. No liens etc.

If I bid and win this auction, say I got it for 10,000. What happens with the mortgage attached to this place? Do I assume that? Must I qualify for that with a lender before I go to the auction in case I win it? What if I don't I lose my bid money and the property? Must I come up with 180,000 cash after auctions end?

sooo confused??

Thanks again for any help.


I'm not sure about CA, but I doubt that foreclosing on HOA fees would extinguish a first mortgage. So I'm guessing the first mortgagee ($180K) will bid enough to win the auction. You might try contacting them in advance (I'm not sure they would talk to you, or even consider my crazy idea) and tell them you'd like to step into the first mortgage, you have good credit etc.

I'm not sure most mortgage co's are smart enough to do anything creative like that but it's worth a shot.

BTW, in TX a first mortgage foreclosure CAN wipe out unpaid HOA dues, late charges and lawyer's fees.

all cash

Ok, how ' bout this situation. The county's website is showing a property going to foreclosure with a loan balance of 119k. Zillow has this prop appraised at 164k. So about a 33% equity position. The 119k loan was recorded as a deed of trust on 12/22/04 as a conventional 5.5% adjustable loan. Am I safe to assume that this loan is a first? The clerk and recorder had lots of confusing info on this prop. If it is a first what happens to to the 2nd loan, tax liens, mechanics lien etc (if any)? Is it worth to hite a title company just to make sure that there is only one loan against the prop? I live in CO.