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Author Topic: HOA Foreclosed On The Property, Is Short Sale Still A Possibility  (Read 6704 times)

Offline Malawa

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Currently I have a deal that have I've been workiing  for a month. Countrywide was taking their time to assign it the negotiator, and during this waiting period, the HOA foreclosed on the property due unpaid HOA dues. My question to you, is a short sale a possibilty here? Or what would you do instead?
Give First
Jeff Ochieng
www.renttoownnc.com.

Offline hamp33

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Re: HOA Foreclosed On The Property, Is Short Sale Still A Possibility
« Reply #1 on: March 04, 2008, 07:56:04 am »
It seems Countrywide holds mortgage  if you are negotiating a short sale with them and not the HOA. I'm not sure the HOA can foreclose on a property unless they hold first position. If it's a lein, find out what the unpaid balance is. Make an offer with the caveat that if Countrywide forecloses, they will probably get nothing. Continue on with SS.

Offline Dave T

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Re: HOA Foreclosed On The Property, Is Short Sale Still A Possibility
« Reply #2 on: March 04, 2008, 10:16:29 am »
HOA liens are usually junior liens and HOA's foreclose all the time.   Most of the time, the foreclosure is subject to the mortgage lien.  CW is most likely still in first position and a portion of the sale proceeds will go to the HOA to get them to release their interest.

Don't expect the HOA to settle for less than full amount of unpaid fees.

Offline Monster_Babar

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Re: HOA Foreclosed On The Property, Is Short Sale Still A Possibility
« Reply #3 on: March 08, 2008, 09:42:45 am »
An HOA foreclosure is a long and very expensive process that an association does not want, because at the end of the day there is no guarantee that they will get any money after outstanding taxes and the mortgage get there’s.  The board just wants that guy gone I think they would take what they can get in this situation.

Offline Beachboy

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Re: HOA Foreclosed On The Property, Is Short Sale Still A Possibility
« Reply #4 on: March 09, 2008, 10:50:13 pm »
I agree with Dave.  HOA liens are usually junior and often have a right of redemption period depending on the state.  If you get the SS worked out, you may have to deal with the unpaid HOA dues at some point.  I have seen them get waived locally if you tell the HOA that you are the new owner and plan to pay promptly.  Good Luck!

 




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