Foreclosure in Tampa>Question Details

reconsultant…, Home Seller in Tampa, FL

I purchased an HOA lien at a foreclosure auction, I now have ownership. I want to do a shortsale with the old owner how would I go about doing so?

Asked by reconsultants1, Tampa, FL Sun Nov 18, 2012

Help the community by answering this question:


Here's the deal. When you purchase a HOA lien at foreclosure, you are in a 2nd or even 3rd lien position. There is most likely a bank loan ahead of you. This mean you received a dirty title, one that is subject to other liens.

So, you do not really own the property. If the owner has not paid the HOA dues, he is probably not paying the mortgage either and will be foreclosed upon. In this case, the future owner will be the lender.

Your goal is to either pursue ownership (short sale purchase) from the lender or evict whoever is living in the unit and rent it out to recoup your "purchase" price before the bank forecloses on the property, resells it and evicts the occupants.

You just bought an extremely high risk investment and if not handled properly, you will most likely lose whatever you paid.

Simon Campbell -
2 votes Thank Flag Link Tue Nov 20, 2012
i bought 5 of them I have 3 left 2 years later....everything you said is spot on correct the original mortgage company has evicted my tenants and sold the properties since.
Flag Wed Jan 14, 2015
Probably the best advice would be is to contact a Real Estate Attorney. Did you just purchase the HOA lien ? Is still an lender holding the mortgage ? I use a great attorney for all my shorts. He also owns a title company so he closes the transaction also.
My email is if you send me a message I'll get you his information.
Dyana Metcalf
Florida Executive Realty
1 vote Thank Flag Link Sun Nov 18, 2012
What if the property does not have a mortgage of any kind? Would you gain title them?
0 votes Thank Flag Link Sun Nov 8, 2015
I live in NV. Here when a HOA lien/foreclosure is purchased by an investor. The investor has firs position.…
0 votes Thank Flag Link Sat Jul 12, 2014
If you need answers or help with your HOA lien, evictions, quiet title or short sale call attorney Robert Noggle @ 702-525-4113 or 450-6300
0 votes Thank Flag Link Tue Jul 9, 2013
i jumped on the same bandwagon and bought a hoa lien and all it has brought me are headaches. Now, i know the bank is coming after the house to foreclose it and my fear is that my name will be included in the complain filed to court by the bank because i am a title holder. i was never a borrower on this property however if the claim goes to court with my name on it it will show in public records WTF! Ive met with an attorney and he says this will not happen and i will just be evicted but ive heard otherwise from credible sources, who to believe???
0 votes Thank Flag Link Tue Jun 4, 2013
Reconsultants1, why did you purchase the HOA lien? Did you just get captured into the spirit of the moment? Purchasing a Tax Lien would have been a better choice.

Purchasing the HOA lien and wanting to do a short sale with the owner are unrelated "events". Purchasing the HOA lien does not provide you with leverage to force the owner into a short sale. The HOA lien, is not in first position as a lien holder. The first mortgage lender is the first lien holder, only a tax lien jumps in front of the first mortgage lender holder. This is why banks pay the property taxes to avoid this situation.

As mentioned you have a lien on the title but you fall in line with other creditors to be paid.

If you'd like to approach the owner regarding a short sale, you will have to utilize a realtor to handle the transaction.

Did you read a book or attend a seminar on wealth in real estate? Did you read the whole book or attend the entire seminar? You have spent money on a lien that created a mess rather than launching you toward real estate riches.

Check with a real estate attorney how you can be resolve the HOA lien acquisition and then find a realtor to assist you with approaching the property owner regarding a short sale.

Best regards,

Lynn Brock
Brock Realty Inc.

If you'd like to search the MLS like an agent in real time, you can visit our website and sign up for a free Listing Book account. You will be able to change the search criteria to suit yourself and received morning reports regarding new listings, price changes and recent pendings.
0 votes Thank Flag Link Sun Nov 18, 2012
Last I checked, holding a lien does not make you owner. Bank MAY also have "lien" and it would be first in most cases. So I don't believe you have ownership until you have clear title. Call me stupid! And since you are talking about short sale, looks like you have a bank in first, and I really don't think you can short sale to owner without the MAN in first (bank). If bank does so, they must be very stupid.

What you need is a Florida Real Estate Attorney to sort this out.

Looks like you are holding a bag, question is . . . what is in it, and I think I know.
0 votes Thank Flag Link Sun Nov 18, 2012
You need to contact a lawyer. Realtors cannot give legal advise.
Sandra Sanna
Coldwell Banker
0 votes Thank Flag Link Sun Nov 18, 2012
What you have done is created a cloud on title. While you may have created ownership - you don't have clear title. Contact an attorney to fix, it should be similar to a tax deed so it will take awhile. Good-luck.
0 votes Thank Flag Link Sun Nov 18, 2012
If you've watched the news this week. you will have met a fellow who purchased as you did, tricked it out to the max and was foreclosed on. Left with nothing but memories.

What you are attempting to do is possible, but there is so much we do not know.
When I do a short sale I always settle with the second lien holder first, which may be the same process you are using. The big clue we all see is your "NOW WHAT DO I DO?" question.

No one can give you actionable data. It is important to know what, if any options you have created or eliminated or compromised.
We don't know what, if any, agreement you have entered into with the owner.
We don't know what, if any, experience, credentials or resources you have with which to work.

The best, next step, truly depends on your knowledge and capability. What you will attempt to do is contact the bank. Doing this, unprepared, will make the outcome predictable.

The safest next step is to call Dyana.
No, don't use that 'contact' button.
No, don't use Trulia email.
IF you are serious, and this IS a serious situation, you will acknowledge this by picking up the phone and calling.

Best of success to you.
0 votes Thank Flag Link Sun Nov 18, 2012
I don't agree with your method;
You purchased the TAIL and are working your way to the HEAD.
You could easily be left with nothing.
Talk to a Realtor.
0 votes Thank Flag Link Sun Nov 18, 2012
Have you spoken to the old owner? You'll need a licensed Realtor who specializes in Short Sales as most banks won't allow you to do a short sale without a Realtor. Perhaps the Realtor could be the intermediary between you and the homeowner and show them why its advantageous to short sale. Call me if I can help.

Liane Jamason, REALTOR, CDPE
Smith & Associates Real Estate
813-486-4997 cell
0 votes Thank Flag Link Sun Nov 18, 2012
Call me and will discuss Octavia 7274038948
0 votes Thank Flag Link Sun Nov 18, 2012
Call me and will discuss Octavia 7274038948
0 votes Thank Flag Link Sun Nov 18, 2012
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