That's why the milk is at the end of the supermarket.

John, Way to milk every ounce of drop out of that one.

Mostly because if the guy is messing around with you now and trying to milk the deal I wouldn't really trust him.  

While its intention is good, i.e. prevent equity skimming, it has another result, due to its poor verbiage, that prevents many pre-foreclosures from getting the help they need.While not all is lost as there are many non-owner-occupied properties to work with, it is nonetheless a hindrance. 

If the price you pay for the HOA's equity plus the existing secured debts is attractive, go ahead and buy, but don't think for one minute that you're going to pull a fast one over the lender.Oh, and be careful about equity skimming jaws should the existing loan be Federally insured.

My young dumb self thought I could milk it for a few years though and save enough in the maintenance fund to replace it. 

They've been evicted multiple times before, and will probably just try to milk the situation further in some way if they sense you're worried about them trashing the house.

Usually this gives you a short list to skim looking to see if a tenant or potential tenant has ever been involved, or is currently involved, in an eviction proceeding (or other matter). 

I am also trying to figure out the regulations with my HOA, but I don't want to ask specifically the reasoning so I skimmed the C&Rs and my deed but couldn't find anything that is clear.

many states have enacted any equity skimming laws as it relates to those in foreclosure.. you need to check you state laws but Hawaii being Hawaii I would not doubt they exist.the issue was there were many flat out crooked companies doing foreclosure bail out.. you know send them 1500 and your troubles go away only to have the company pocket the money and do nothing.I can't tell you how many homes i bought at courthouse steps were this was the case and the owner who lost it said   YA BUT I paid this company...