Foreclosure in Thousand Oaks>Question Details

abasilerace1, Home Owner in Los Angeles, CA

Can our HOA that took title to our property negociate a short sale with our lender on OUR note without our consent???

Asked by abasilerace1, Los Angeles, CA Thu Apr 4, 2013

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Chris Mccloud’s answer
They can try anything they want they own the property. The first will usually just foreclose on the HOA. Sometimes the HOA does this just to get someone out that has not paid there HOA for a few years. The HOA wants the bank to foreclose so that it can be resold and a new buyer will start
paying the HOA dues. Unless the first trust Deed is very small there is no money in it for the HOA most of these properties are way upside down.
0 votes Thank Flag Link Tue Apr 9, 2013
Hi,

Usually when a HOA or other entity forecloses on a property4 as a junior lien holder they have the right to buy out at full price owed the note of all the senior liens, and if they can negotiate for a discount buy it for a discount.

If they cannot it is common for the junior lien holder to go to auction and buy the position of the senior lien holder, to protect their interests.

Again I cannot give legal advice and thanks for the compliment. Please speak to an attorney to protect yourself.
0 votes Thank Flag Link Fri Apr 5, 2013
The HOA made a big mistake by foreclosing on you, if that is what transpired. Now, your lender can foreclose on the property and the HOA will end up with nothing. Once the HOA forecloses, their reserves will be depleted each and every month, since your portion of the HOA fees are not being paid. Also, all the county taxes are now the responsibility of the Home Owner's Association. You want to verify that the HOA did not just put a lien on the property. I am not giving you legal advice here, but I had a similar situation happen with my client:
The HOA foreclosed on an active military owner, but the BofA, who held the 1st position mortgage, was aware of the law that prohibits foreclosures on active military owners. A full 2 years later, the seller worked with the HOA to short sale the home, and get a new Buyer/Owner to resume making the HOA payments. This enabled my buyer to remove the foreclosure on his credit report and benefited all the parties. Bofa was able to get the negative-performing asset off their books and the HOA can now resume collecting fees to remain economically viable. Good luck -- let me know if you need assistance, but your lender needs your permission to discuss your loan.
0 votes Thank Flag Link Fri Apr 5, 2013
I agree with Albert on getting professional legal advice as this situation is not within the scope of our real estate services.
0 votes Thank Flag Link Fri Apr 5, 2013
From what I know and hear from the experts, if the HOA in now on title as the owner, they can negotiate with the other lien holders, and the lien holders may or may not cooperate with them. Your loan is a lien holder.

I cannot give legal advice, but have seen this done before in the past. I would contact an attorney for legal advice. If you cannot afford one there are several non profits you can call.
0 votes Thank Flag Link Fri Apr 5, 2013
The HOA would need your cooperation to do the short sale with your lender because the loan or mortgage is in YOUR name. You may still be able to short sale though the hoa took title which would be better for you. Please call me directly at 818-903-2040. Thanks

Sara Mehrpouyan CDPE
Specializing in Short Sale and Foreclosure
Rodeo Realty
Direct phone 818-903-2040
Dre license 01712757
0 votes Thank Flag Link Thu Apr 4, 2013
Hi Connie, but under federal privicey acts cover us from any of our info being shared with the HOA.. Our lenders can only give the payoff amount and no other info.. That is my understanding...
0 votes Thank Flag Link Thu Apr 4, 2013
I believe they can as they are the new owners of that property through a foreclosure action. Along with taking possession of your home, they also got any loans on the property recorded before their Notice of Default and are now responsible for those payments owed currently and any back payments along with current and back owed property taxes.
0 votes Thank Flag Link Thu Apr 4, 2013
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