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Foreclosure in McKinney : Real Estate Advice

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  • Local Info33
  • Home Buying108
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Activity 10
Thu Sep 4, 2014
Amy Arey answered:
This home has now sold, but if still looking....are you wanting this particular neighborhood, or just looking at that particular home because of a "great deal"?

Feel free to contact me if I can be of any assistance! :)

-Amy S. Arey, Realtor
Halo Group Realty, LLC
214.901.1341-Cell
www.MckinneyRealEstateInfo.com
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Fri Jul 25, 2014
Susie Kay answered:
Check my website at www.dfwdreamhomes.net for the most updated info on homes available on the market.

Susie Kay
United Real Estate
469-371-2899
www.dfwdreamhomes.net
0 votes 2 answers Share Flag
Sun Oct 14, 2012
Tiniyamayberry answered:
Okay thanks!!! I have a job and all it's just hard trying to get into anything
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Mon Sep 10, 2012
Trey Teichelman answered:
Lots can range from $10K to $30K depending on the location of the property and amount of mature trees on the lot.
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Thu May 12, 2011
Xx answered:
Unfortunately, you may little recourse fighting your HOA. You have to understand how much power they have over you. To them, you're just a peon, a nobody. Those certified letters were notices to you informing you of missed payments.

Taking an HOA to court is nasty business, mostly for you. Most likely you'll lose and end up with all their legal fees. Lovely, huh? Yes, I agree, a phone call would've been nice.

So it's best just to pay what you owe right now, instead of delaying it or ignoring. Don't bother taking them to court.

It's best to deliver payment in person, and insist on getting a receipt for proof of payment.
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Sun Mar 27, 2011
Elaine Harper answered:
Deanna,

I'm sorry to hear about your situation. I've worked with several homeowner sinyour situation. If you are interested in stopping the foreclosure proceedings, I suggest speaking with Marcus Leinart, http://www.leinartlaw.com/. I've referred him to about 20+ homeowners and he was able to move quickly enough to save their homes. But I'd call him tomorrow to get the information asap.

As far as how long you have in the house in the event that is is foreclosed on the 5th, most banks offer a "cash for Keys" program that will give you about 30 days to move out. Give or take a few days after the actual foreclosure for the property to be assigned to a local REO agent then the 30 days should kick in. If you do not come to an agreement with the agent on a move out date, you forfeit the "cash for keys" and then the eviction process will be initiated via the constables office. That takes about 7 days.

I hope this was helpful. Feel free to contact me if you have any questions and I can walk you through the process.

Elaine Harper - 972.302.8327
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Wed Jul 7, 2010
Linda Lorenzo answered:
Carol,
If this property is your principal residence do see someone about a short sale. The rules have changed and the banks are now willing to cooperate with a seller rather than do a foreclosure (this is under the HAFA program - foreclosure avoidance, and is new within the last few months and just now really being implemented). Under this program not only will the banks not pursue a deficiency judgment against the seller but you will receive $3000 relocation costs. Let me know if you are in the McKinney area, I would be happy to discuss this further with you. In any case I wsih you well. ... more
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Wed Dec 16, 2009
T.E. & Naima Sumner answered:
It might have been easier to attend the auction on 12/1 and buy the deed directly. That would have assured they did not have a claim on the property. The foreclosure itself takes precedence over your payment to the HOA. You would have had to pay in cash before 10 AM on 12/1 in order to state that you paid in full prior to foreclosure.

Now you're not in a good position since they have clouded your title. HOA did take title from you but you can redeem your indebtedness now and get title back. The clock is ticking. Contact them and ask how much more to get title back. It is doubtful that the original $1350 will cover the new amount due after foreclosure.

As to collecting rents, the owner has a right to collect rent from someone living on the property. The question is after foreclosure, who owns the property - you or the HOA? Would it make sense for the "new owner" to tell the tenant not to pay rent at all? No, but he might have been told not to pay you (the ex-owner) but to pay the HOA (the new owner).

Damages caused by action of others can be claimed in Justice of the Peace Court, but you have to have evidence of the damage and that you tried to mitigate the loss. First, get title back. Call an attorney and discuss your problem.

The HOA is probably painfully ignorant of the fact that the property can encumbered with your mortgage lien. You can still pay it each month even though technically they own it. If no one pays it, the mortgage company will foreclose the HOA. Too bad, so sad. Often HOAs think they get the property free and clear. They don't. Besides taxes already due and those that will become due, the foreclosed property has all superior liens still attached. Normally, the first and second mortgage are excluded from the HOA's claim of priority by a subordination clause in the covenants. Ask your attorney what you should do.
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Thu Jul 9, 2009
T.E. & Naima Sumner answered:
You are trying to do the right thing by working with the bank(s) on your mortgage payments. If you cannot find a renter to bring in some money to help cover your expenses, the debt will pile up faster. So, it is best to try to find either a buyer or a renter.

Generally, summer is the best time to find both buyers and renters, and depending on the location and condition of the propert(ies), you could have a renter in a few weeks. Getting money either from a renter or a buyer will demonstrate that you are trying to solve the problem. Simply doing a sale may not convince the bank that you want to minimize your (and their) loss.

As to HOAs, the priority of liens is taxes, HOAs, and mortgages. After that come mechanics and other types of liens. This priority is because taxes (government liens) always are first, regardless, and all others go by the filing date of their document(s). Your HOA documents were filed long before your mortgage.

Having said that HOA are above the first mortgage is not wholly accurate, though. Almost every HOA declaration of covenants contains a Subordination clause. This clause is almost always required by lending banks in order for them to lend to a homebuyer subject to HOA. The clause usually provides that even though the HOA is superior, they will subordinate their claims to the claim of a lender (first mortgage). This subordination allows the mortgage company to foreclose for non-payment and yet not have to worry about the HOA in turn foreclosing on them. An out-of-state Realtor responded that the HOA is first -- they're almost assuredly not.

Foreclosure wipes out all junior liens, including second mortgages, mechanics' liens and so on. They're just gone after foreclosure. The document that created the lien may have a provision to provide that the amount owing becomes a personal lien, but the property is free and clear of all junior liens. Obviously, taxes are never junior.

The strange effect is that if the HOA decides that it wants to foreclose, they don't wipe out all other liens. Yes, they do have the power to place a lien and then foreclose it for non-payment. If the subordination clause is present (depending on what it says), when the HOA forecloses they get title to the property subject to the mortgage and any superior liens, specifically taxes. Your attorney can explain this best.

Associations often don't understand this problem. They threaten and finally do something, only to have the bank foreclose on them, because the HOA did not pay the mortgage. Okay, they could pay the mortage after they foreclose, but most associations are not rich enough or educated enough to do that. You have no obligation to educate them.

Read the Declaration of Covenants, Conditions and Restrictions (CCRs) -- these created the HOA's power to place a lien superior to your mortgage, then read the Articles of Incorporation and the By-Laws of the HOA corporate entity. Usually the By-Laws tell you what powers the HOA corporate Board has to enforce the covenants and rules. The rules & regulations are things created by the Board after it is formed. Rules can be altered fairly easily, typically by a Board vote. Covenants, By-Laws and Articles are usually much harder to change, often requiring the consent of a super-majority of the homeowners subject to the HOA.

When you closed on the property, you should have received a copy of all 3 of these documents plus the rules, if any. After looking them over (try not to fall asleep), you will understand better what the procedure should be to get you to pay and when/how they foreclose if you don't (and whether the subordination clause is included). Then you can contact the HOA management, which might be a separate company hired by the Board, and explain your troubles. The name at the bottom of the threatening letters is a good place to start.

You don't have to teach them what you learned in reading the CCRs etc., but you should find out what they're planning to do and how you can get them to back off from legal action. Your objective is to get the money for them, but you don't have it yet, and you need to explain that, and that spending time and money to take and respond to legal action will only make it harder to pay them off.

Do mortgage companies pay the HOA when they agree to a short sale? Usually, they do.
But, again, your objective should be to get some money, either as rental income or from a sale.

Because of the larger number of foreclosures in the D/FW area (about double that of past years), the rental market is pretty strong. It is surprising that you can't find renters unless the properties are in bad locations or poorly priced.

Let me also apologize for the noise from out-of-state jokers who don't have a clue about Texas law or the Dallas market, and then muddy up your genuine problems with their whining about their bruised ego and need to keep that off-line.
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