Buying a HOA Lien Foreclosure - Working with the Lender following the Purchase

Just wondering if it is common for investors to purchase HOA Lien properties at auction, then work with the lender (assuming there is a mortgage still attached to the property) to come up with a plan to sell the house that both the bank and investor can benefit from. I am thinking that a bank would be inclined to drop their price on the house, and letting the investor take care of selling it, instead of letting it go into foreclosure and deal with all of the fees associated with re-selling it. I may be wrong, but it sounds like a good idea to me. Just wondering if anybody has done anything like this.

Thanks

I haven’t but it sounds like a good idea. Please pursue it and let us know how that goes.

Furnishedowner

Are then any HOA rules that may cause this deal to fall apart? Or cause the next stage (LO, Sell, etc) to be disallowed?

It is often very hard to speak the the lender since you are not the borrower.

Quite frankly the way to make money on these is kind of scummy but you buy the HOA lien at FC and take possession. Rent the house but don’t pay the mortgage. Collect the rents as long as possible until the bank forecloses and then walk away.

Wow! That sounds like really PROFESSIONAL advice! Seriously? :anon

:shocked

Quite frankly the way to make money on these is kind of scummy but you buy the HOA lien at FC and take possession. Rent the house but don't pay the mortgage. Collect the rents as long as possible until the bank forecloses and then walk away.

Eric3, you call yourself a professional? Kinda Scummy? How 'bout total scum. It’s yo-yo’s like you that caused the mortgage meltdown that we are in now.

Most of the times, if it gets to the point where the HOA is going to foreclosure on a house, the lender will pay off the HOA.

No wonder this country is broke…financially and morally.

Keith

I agree. I can’t see any bank risking the loss of an entire property over what would be in the big picture a negligible amount of money owed to an HOA when comparing that amount to the overall value of the property.