I recently came across HOA foreclosures, which started from a listing.
I 've heard, depending on the state, that some may be a "super lien," going in place before the 1st, whereas others, they're 2nd, or even 3rd.
It seems that some buy the HOA foreclosure, and then rent the house out, until the lender finally forecloses, hoping that they can make back their investment in rents before-hand.
My questions are on both sides of this equation.
The general assumption is that if one's struggling to pay the HOA, they may soon be struggling to pay their mortgage. Would this make them a potential for "pre-foreclosure help?" Assuming those on the HOA board don't have an agenda to foreclose, and buy it cheap, would reaching out to HOAs to offer the solution to buy the delinquent house, and paying the HOA back fees as part of the process, so home owner doesn't face foreclosure, be a viable business model?
On the other side, if the HOA has foreclosed on the home, and the redemption period has passed, do they usually try to sale at market value, or is this a good source for deeply discounted deals?
Thanks for your time!
I have come across a couple of these where the HOA will not foreclose either because their internal documents don't allow it, they don't know how, or they don't want to deal with it. It might be better just to reach out to the homeowner directly and say that you would be willing to make an offer that would pay off any liens they may have as well. The incentive for the HOA to tell you that they are delinquent would be that they would get their overdue dues paid off.
Free eBook from BiggerPockets!
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.
Sign up below to download the eBook for FREE today!
We hate spam just as much as you
Create Lasting Wealth Through Real Estate
Join the millions of people achieving financial freedom through the power of real estate investing