Hoa forclosure

9 Replies

Hi everyone I am from Florida and I bought a house in the foreclosure auction from the county The way it looks like the Hoa put the lien on the property and got the final judgment from the court I win the property at the auction and now I am in a fool fool stress My question is are the mortgages can come after me ???????
There are undoubtedly mortgages on the property and you essentially took responsibility of the senior mortgage. You made a mistake in this instance but you still have choices. How much did you pay at the auction? What condition is the property in? How much will it rent for? Your best bet is to rent it out ASAP. You want to recoup as much money as you can in the time you have. It may be a year before the lender gets to foreclosure so you can get some rental income in this time frame. You need to find out how much is owing on the property. You may be able to do this through county records. What county are you in? After you have this information, you can decide what to do. If the numbers make sense you could pay off the loan balance. You could also contact the bank and try to negotiate a lesser amount after explaining your situation.
There is no possibility that the first and second mortgage would dissolve? I look at the county records and it look like the lender asked to dissolve the Lis pendants I bought the property for 20 K and it's worth 350 K
There is no possibility that the first and second mortgage would dissolve? I look at the county records and it look like the lender asked to dissolve the Lis pendants I bought the property for 20 K and it's worth 350 K
How can I find out also if the lien of the Hoa which lead to final judgment is a super lien that would override the mortgages

I'm surprised the HOA took 1st position behind the mortgage lender! Most, if not all, liens sit behind mortgagers. The whatever is left they get.

The county should have the latest records. If you found out there are no other lenders on the title, then your clear. If so, contact them and tell them you own the property. Before you contact the lender, know what you're going to say. Know your numbers about your house and the neighborhood, comps, etc. Be prepared to ask them all about the mortgage. Who knows? There may be some equity. Don't hold your breath. 

If you can afford it, take over the mortgage, rent it out, and get that place working for you to pay off that PITI. Hopefully, you'll squeeze out some cashflow.

If there is no mortgage, and no other liens, you made a killing.

No, there is no chance the HOA overrides the mortgages. Dismissing (not dissolving) the LP simply means the lender must refile for foreclosure. Please, order a title search from a title co. So you know exactly how many mortgages and liens are on the property. Your only play is to rent the property out until the bank forecloses.

As Wayne said, there is no way the HOA is superior. Unfortunately there is no lucky way out of this. Get a title search done so you have all the facts. In the meantime get it rented ASAP. Lets say the net cap rate is 10%. So on a 350k property you could net $35,000 in a year. That recovers your $20,000 investment plus a $10,000 profit. That's assuming the bank takes a year to foreclose. It could take more or less time depending on all circumstances. Good luck

@Oren Sharony

You can have a PI skip trace the previous owners and if you can locate them, see if they will let you submit a short payoff request to the mortgage services. 

Free eBook from BiggerPockets!

Ultimate Beginner's Guide Book Cover

Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!

  • Actionable advice for getting started,
  • Discover the 10 Most Lucrative Real Estate Niches,
  • Learn how to get started with or without money,
  • Explore Real-Life Strategies for Building Wealth,
  • And a LOT more.

Lock We hate spam just as much as you