All Forum Posts by: Robert D.

city violations will stay. same deal with taxes. you will have to pay after you buy it. depending how the mortgage was serviced the bank may pay (or not) the property taxes. assessed value might be way off from the market value - you need to pull comps from MLS to find out. does the house have some old MLS listings from 2007 or 08 that you can dig out on MLS ? anyways ..given that the value might be around 140K I would not buy for 130K ....

whats the approximate value of the house ? if its close to 130K that might mean that's the 1st mortgage. not sure about HOA in IN. in IL you are responsible for 6 months back (will be 9 months soon) + attorney costs if HOA started eviction. if they did not file forcible entry or breach of contract or anything that shows "institution of an action to enforce the collection of assessments" they cannot legally enforce 6 months back. if they cannot prove it i dont pay them anything. all other liens should go away. look up the lis pendens intself. see who is named in the lawsuit. those are the liens that should go away (if there is defeciency, if there is surpluss ...some of they will et paid). if something else is recorded AND not named in the lawsuit ...contact attorney

the judgement is low ...the starting bid might be even less. what you need to do is making sure what previously recorded document the "lis pendens" references. it should reference mortgage with the highest amount and recorded the earliest. this way you will you are bidding on the 1st mortgage...2nd mortgage is usually for a smaller amount, all other judgement, liens, HOA dues will stay (or not) after you purchase ...depending on your state law

taxes and legal protection 2 separate things. 

the judge will ask : well show me that your LLC is not your alter ego but a legal entity separate from you.

ok here it is : separate bank account, all properties are deeded under LLC, utilities under LLC, all contractor checks written on LLC, ADT set up under LLC, insurance policies under LLC. never comingled any personal funds with those that belong to your LLC etc etc..I simply acted as a manager of my LLC.

so worst come to worst ...all your assets under your name should not be exposed of course, you personally will be named in any lawsuit that involved your LLC ...keeping your record straight will help judge to decide if indeed your LLC is a separate entity

I have to run this by my CPA--> not sure CPA would risk his license explaining anything...this job belongs to asset protection/planning attorney. 

some owners are really pissed at the whole system and the fact that they put down 5%, spent X amount in remodeling and now ..somebody is buying the place for 20c on a $. ...so before they leave ...they might decide to "subtract" some value ...concrete poured into plumbing, ripped off whatever can be sold, cabinets gone etc ...so buy ONLY at a huge discount assuming its a total rehab. if a place is bought unseen. ...pull comps in the area ..and figure you need to spend e.g. 50K for full gut rehab. then figure is it still worth it ..whats the going rate in the area ...

as far as owners ...if they see you ..they figure they face the person now ..not the system. it might be good or bad ...many unknowns.  but hey ..no risk no freedom

Some States Give HOA Liens Super Lien Status

Approximately 20 states have laws that give HOA assessment liens super lien status under certain circumstances. For example, in Colorado, HOAs have a super lien that has priority over a first deed of trust (mortgage) to the extent of six months worth of delinquent assessments (Colo. Rev. Stat. § 38-33.3-316). In Nevada, nine months of assessments have super lien status (Nev. Rev. Stat. § 116.3116).

What Happens When the HOA Forecloses its Super Lien?

If the HOA forecloses a super lien, not only does it collect its debt, it eliminates the first mortgage, as well as any other junior liens on the property. Consequently, when a lender is notified that a foreclosure has been initiated by the HOA for unpaid assessments in a super-lien state, in most cases, the lender pays off the super-lien amount to preserve its position as the first-lien holder and stop the foreclosure.

There have been instances of first mortgages being completely wiped out in an HOA super lien foreclosure when the mortgage holder neglects to pay off the super lien to halt the foreclosure. As a result, both Fannie Mae and HUD (the U.S. Department of Housing and Urban Development) have instructed mortgage servicers to proactively protect the priority of the mortgage lien and to clear all liens for delinquent HOA dues, rather than waiting until an HOA foreclosure starts, to keep this from happening in super lien states.

now court is in recess. have a nice evening

 mortgage underwriter can kill the deal because of that, unless you post money in escrow (in some cases). sounds like a fun conversation with the city. can you use that to negotiate some more "credit" towards purchase price ?

 never an owner. always a manager. "property is owed by group of investors I am only hired to manage it". that rule will save you a lot of pain down the road. if they are not comfortable with that ...NEXT

I am showing the place between 2pm and 4pm. end of story. all the questions can be asked/answered there. I dont waste time driving to meet for 1 appointment. I dont respond to any calls. all I do is send back generic txt message with all the info about the apartment and when I will be there next time. I dont ask any prequal questions. dont waste time for that. between 2 and 4. be there. $15 application fee required. that filters out 60% of deadbeats.  

How would you define “first mortgage” ? is that the mortgage that was recorded the latest ? I see that the property I am planning to bid on has multiple mortgages …but the lis pendends forecloses on the one mortgage that was recorded the latest. No other mortgage was recorded after that one. Is my reasoning correct that once they foreclose on the latest mortgage it will extinguish other non superior liens ? how about mechanical liens (state of IL) ?