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Tim Czarkowski
  • Involved In Real Estate
  • Jacksonville, FL
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Purchase an HOA Lien?(On purpose this time)

Tim Czarkowski
  • Involved In Real Estate
  • Jacksonville, FL
Posted Apr 17 2012, 14:16

I had someone bring up an interesting business plan after my recent trouble with purchasing a HOA lien that was thought to be a first mortgage. The idea would be to purchase HOA Liens and then rent the property out till the first mortgage is foreclosed. As long as the first mortgage foreclosure process was not started there should be about a 2-3 year window to cover the cost of the lien and make a profit. The tenant would be protected by having a long term lease in case the bank foreclosed earlier than expected. I thought it was a creative way of making money with the foreclosure mess. What are the problems with it?

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