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.
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.
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.
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.
Sara Mehrpouyan CDPE
Specializing in Short Sale and Foreclosure
Direct phone 818-903-2040
Dre license 01712757