Recently our agent found a great property for a great price that has been abandoned over the past 7-8 years. We won the bid and the contract and have pursued inspections, contractor bids, etc. We've been preparing to close and over the past several weeks, the close date has been moving due to our agent claiming the HOA and lender cant .get it together" no other info has been brought up. 8A week later we were told the title company is changing and given a new close date (we got our ernest money back, wrote a new check, etc.). We have several flips going so we did not think much about it other than it was inconvenient. 48 hours ago our agent called to tell us that now we cant go to close unless we can get something signed by the buyer indicating that she is ok with this sale. Otherwise, the lender can come back and foreclose on the property. Does this make any sense to anyone on BP? We can't find the owner, don't know if shes even alive but we are looking. We are ready to walk away, obviously they cant get clear title. Is this common for HOAs?
As I understand your scenario, the HOA foreclosed on the property for non-payment while the lender had a mortgage against it, correct? Are you trying to get title from the HOA or from the lender?
Yep, need some clarity.
Who is the "seller", the HOA or the bank.
How did they acquire title?
By "finding the buyer" I assume you mean the seller?
Reading between the lines and missing information, it sounds like maybe the HOA foreclosed, and is now trying to do a "short sale" without the original owner/mortgagor. If so, this was a do-not-pass-go from the beginning. It can Not be done without the involvement of the original borrower. The listing agent should have known better.
Well, not really sure who is holding title. I think the HOA is the one who is concerned that without the original owner signing off on the deal the original lender can foreclose on us. Does not make sense to me either. My husband has been talking with our agent and hes getting so aggravated about it, I'm trying to piece together what our agent told him via his side of the story!9
You don't know who the seller is? Their name is on your contract. The HOA must have taken it back, otherwise the bank would be selling it, there would be no future bank foreclosure concerns andthe HOA would simply get their pay off. Sounds like the situation I described above.
If you would PM me some information about the property, I can have my lien guy do some checking and see if we can give you a lead as to who to contact. I'm interested to see what the title search shows on a property like this as I have been tempted to buy some of the HOA liens.
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