HOA owned homes due to Foreclosure

[Gina M Coen]

I learned that my HOA has foreclosed on and currently owns over 100 houses in my community. I would assume that it's not convenient for them to own these properties as:

1. They will have to continue to pay any liens on the property (if previous owner is not) or risk getting foreclosed on

2. They probably prefer having residents paying HOA dues.

What are the "rules" for these HOA owned homes? I know that the HOA can only foreclose on these homes maximum for what they are owed. Now that they own these homes, can they sell them for full price if they choose to, or do they still have to accept only what they are owed?

Thanks!

[Wayne Brooks]

@Gina M Coen You are mistaken, the so called "super lien" status here has no bearing.....an hoa foreclosure has absolutely No effect on a first mtg.  Think about it, this is why no investors bought the property at the hoa foreclosure auction, because the mtg stays with it.  The lenders will foreclose at some point and if you look them up, most of them are already in foreclosure by the banks.

Also, an hoa having taken back 100 units is a terrible sign for the development/neighborhood.