Foreclosure in 32801>Question Details

Adi, Other/Just Looking in 32801

I know that HOA can foreclose on the property in FL, but what happens if there are 2 separate foreclosure cases and HOA forecloses before the lender ?

Asked by Adi, 32801 Wed Jun 1, 2011

If I buy property at the foreclosure sale and plaintiff is HOA that foreclosed on the property with a judgment for $ 12000, but there is still a case against the owner by 1 lien holder, however they still did not foreclosed or obtained judgment. Would I be a legal owner or bank that has a lien can still make a claim, even County Clerk sold property at Foreclosure Sale?

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6
Natalya Lopez’s answer
The HOA is a secondary lien holder. They have the right to foreclose and have the possession of the property until the bank decides to take over. I know people who buy HOA foreclosures all the time. You just need to check the status of the mortgage, run a quick title search and see what's happening. You can't blindly jump on it, very risky!
Since you know that the bank filed foreclosure it's just a matter of how much time you have. Are you trying to get the property and hold it as long as possible while collecting rent? Keep in mind that HOA most likely will have it rented already. Depends on how much it will cost you all together will all the court fees.
The key point it to investigate the bank case, see if there is a sale date scheduled with the court.
Good luck!
0 votes Thank Flag Link Fri Oct 18, 2013
The lender will still have the right to foreclose since they have a case pending. A title search will avoid problems like this.
0 votes Thank Flag Link Sat Jan 25, 2014
The best way to get an answer is to ask for a title commitment from your title company. If the title insurance company will insure your title without exception you are good to go. If the title company will not insure against the mortgage company claim, your question is answered.
0 votes Thank Flag Link Fri Nov 1, 2013
Hi Adi,

It would serve you well to spend some time with a trusted advisor regarding the purchase of properties at the courthouse steps. There is a peeking order on liens and if you are buying a foreclosure of a junior lien, it could lead to an unpleasant experience. In addition, things that do not automatically go away at foreclosure -- IRS liens, property tax liens, code enforcement liens and HOA liens. I was working with a seller who got foreclosed on and sold at the courthouse. The buyer was then responsible for a $50k tax burden....surprise. You need to do your due diligence on each foreclosure file and pay special attention to the parties contacted in the file. Best advice I've received --- If it seems to good to be true....and you are the only bidder....get out of the front of the line... Second best advice --- make sure the property is still physically there before you buy it. A buyer who failed to look first bought a third story condo unit in a building that had burned down. They ended up being responsible for the condo fees even thou the unit was not going to be rebuilt for up to 2yrs....surprise.

If you need a mentor and are a cash buyer, please give me a call. I work with a lot of investors and cash is the best answer for getting solid deals in the market.

Rick Tressler
TCAT Realty
407-421-3002
Web Reference: http://www.floridahouses.ws
0 votes Thank Flag Link Wed Sep 21, 2011
Adi,

Simply stated its all about 'clear' title. Call a title agency, tell the your situation, they should put you in touch with their attorney and you will have your answer. Here's a referal: 1st Service Title of Florida
407-359-1404

Need More Information? Please visit us @ http://topvaluesinorlando.com/

Mike Luzzo
0 votes Thank Flag Link Wed Jun 1, 2011
The bank "selling" the property at a foreclosure sale has nothing to do with forgiving any liens. The bank will still want their money.
0 votes Thank Flag Link Wed Jun 1, 2011
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