Chain of Commitment

General Real Estate Investing
1

Hoping to buy property at the courthouse steps in Mecklenburg County (Charlotte) NC and I need a little info…

I’ve seen several Condos ( and a few homes) being foreclosed on for delinquent HOA dues. For typically such a small amount, the properties could be purchased for 5 to 10 cents on the dollar. So…Who is responsible for any primary and secondary mortgages on a foreclosure such as this?? How would the funds be distributed by the court in a proceeding such as this??? Who gets paid first and who’s picking up the tab???

What kind of liability would I have if I bought a condo for $3500 by purchasing it against a HOA foreclosure.

Thanks for your time!

2

the question here is the order of priority. Since the HOA lien is probably junior to the 1st mortgage as well as any unpaid taxes, you will take title subject to lienholders. Foreclosure by junior lien holders (i.e. came later in time, typically) does not wipre out senior (older) liens. The exception is property taxes and the IRS.