I hope this helps and you can visit the site directly for more info: http://ForeclosureIQ.com
are accurate in thinking the mortgage may have a superior claim.
Any junior lien holder, whether they are #2, #3 or 6th in line
can exercize any foreclosure rights they have. Typically they do
not because they will get $0 after spending the time and money
to exercize their "right". If they do nothing they will be wiped out
by the foreclosure action of the superior lien holder, but at that
time they may have the right to file a personal claim against
the debtor and have not spent money in a foreclosure action.
Delinquent HOA dues can stop a short sale unless they can
be satisfied.....some will negotiate a lesser settlement and
some will not. It may be best to try to stay in communication
with the association as the foreclosure actions by HOA's
frequently are because the association is attempting to get
a nusance property vacant. Making friends will frequently
get you the best results.
And of course you should always consult an attorney for the
necessary legal advise on situations like this.
Good luck to you
Century 21 Select Real Estate
HOA liens are usually junior to a first mortgage. This is because the HOA lien is either:
•recorded after the first mortgage, or
•the CC&Rs or state law makes the HOA lien junior to any first mortgage (even if the HOA lien is actually senior).
This means that the first-mortgage lien will stay on the property following the HOA foreclosure and the purchaser at the foreclosure sale will take title subject to the lien of the first mortgage holder. (Learn more in Nolo's article HOA Liens & Foreclosures: An Overview.)
HOA Super Liens Are Senior to First Mortgages
Some states give certain HOA liens super priority. In super-lien states, a certain number of months worth of past-due HOA assessments are given super-lien status and are senior to even a first mortgage. (Any amounts owed beyond the super lien are then junior to the mortgage.) If the HOA forecloses a super lien, it can potentially, in some cases, eliminate the first mortgage and any other junior mortgages on the property. (Learn more in Nolo’s article Homeowners Association Super Liens.)
(Keep in mind that just because a mortgage lien is eliminated, this doesn’t mean you’re off the hook for the debt. Learn more in
Don La Barbera
Rationally and logically, Kevin, Gina, Ute, and a few of the others are correct that it might not be in the HOA's best intererest. However, also read Justanotherinvestor's comment.
I personally have seen condo associations foreclose on properties out of sheer spite. Or maybe not totally for that reason, but they wanted to teach the condo owner a lesson and wanted to send a message out to other condo owners. HOAs have developed a reputation--not totally undeserved--for sometimes being petty, vindictive, and stubborn. Some HOAs are well-run; others aren't. Some have reasonable, rational folks in positions of power; others don't.
So your situation is more than a theoretical: "Well, yes, technically they could but in the real world it'll never happen."
Definitely check with a lawyer on how to protect yourself.
Hope that helps.
Hope that helps,
Bethany Real Estate and investments
Speak with an attorney if you are concerned with the legal implications. I can refer you to a few who are well versed in this area of the law if you're interested, ofr a nominal fee of $200. But your question really sounds like a piece of a much larger puzzle. So speaking with an attorney may help you sort out ALL issues related to your home.