Buying Tax Liens on HOA Common Areas

2 Replies

I've noticed various homeowners associations have failed to pay the tax bills on their common areas. I assume in a good neighborhood, it is just an oversight and they will eventually pay up and I could collect all the interest. However, what if they don't pay? What good is it to own an HOA park? Can I try to sell it back to them if I have to foreclose? Sell the residents a yearly membership fee to go to the park? Put up no trespassing signs and cut down all their trees if they wont buy the land?

Looking forward to seeing feedback on this.  I have been hesitant to invest in tax liens for the simple reason that, as an anarcho-capitalist, I hate that "governments" have the senior lien to any private property.  Then again, I loathe HOAs almost as much as I do governments!  So, this really has piqued my interest.  Will be watching this thread.  Thanks for starting it!

Usually just an oversite or a delay in paying due to slow dues payments.  The chance of getting a deed is probably in the 2-5% range.  I have held liens on a range of properties from common areas to a golf course, they all paid and usually at the last minute, so maximum return, happy hunting!!