Bidding as Bank/Lender at HOA Auction?

[Chad U.]

We own a non performing note NPN where the HOA is foreclosing upon next week. This was known ahead of time before being purchased as there was a court order granting the HOA right to foreclose, subject to the 1st mortgage. The borrower just came out of BK which stayed the previous HOA foreclosure that they are continuing with, and we are now starting FC as the 1st lien holder.

I had an epiphany today, and confirmed with our attorney but just wanted others feedback to double check. Can we, as the bank/lender, bid on the HOA foreclosure and take title? Is there anything illegal in doing so? The plan was to hopefully pay less than what would cost us in foreclosure fees and take the property over much quicker than going the whole FC route. This is in OH which is not an HOA super lien state.

[Wayne Brooks]

Chad,
As you know I just know FL procedures.....
It makes sense. But, for whatever it is worth, your mtg would still be in place of course even if you bought it at the HOA auction.
Maybe, it would make sense to bid as a different entity than the one holding the mtg. It might give some flexibility should, for some reason, you want to foreclose later....other liens to wipe out, quirks in the local laws, etc.