Why do investors buy HOA liens at auction?
I constantly see investors buying up HOA liens at the foreclosure auction and wonder what is the reason? If they had no mortgage or a low balance on the mortgage, I would understand. Most times they are way under water and still get bought.
Am I missing something? Do they evict the owners and hope they can rent it out long enough to make a profit, while the bank forecloses? Do they try to negotiate with the lien holder for a low settlement?
Doesn't seem logical.
Most Popular Reply
HOA liens are "super liens"! They go in front of first position mortgage, so they can foreclose the bank out, so the bank has a choice, pay off the lien with interest or loose their lien. Same with back property tax liens. Hope that helps. :mrgreen: