HOA Foreclosures - How Likely?
As I'm looking through local public records, there are TONS of homes entering the foreclosure process for not paying their HOA dues. It's crazy. These same houses do not yet have any kind of foreclosure or lien notices put on them by their mortgage holder (nor are the mortgages satisfied, according to the records)...
How likely is it that these HOA foreclosures will happen? What happens to the mortgage(s) on the property - do they become secondary?
I'm very curious - some of these are million dollar houses that just aren't paying a pittance for dues - seems absurd.
I see two or three of these at my county courthouse foreclosure sale each month where the HOA is the plaintiff in the action.
In my area, the HOA is usually a junior lien holder and the winning bidder buys subject to the superior mortgage liens.
What is HOA? And what Dept. of the courthouse do I find forclosures? I'm considering forclosures as my forte in REI. HELP!!!
HOA = Home Owners Association
Fees that are due for general area maintenance in nicer neighborhoods and also townhouse and condo properties. Foreclosure notices are posted on bulletin boards in the hall near the main entrance
Hope this helps some
Ted Jr
I know what HOA stands for, and how the payments are used, actually owning a home that I occupy in a PUD, myself.
My question is how likely it is that the HOA will actually successfully foreclose. It seems like such a stupid thing to lose a house over!
It happens all the time, and many times to VERY nice houses.
The owners get into a little spat with the homeowner association over a tree, or statue on the lawn. They then take attitude with the homeowners association and stop paying.
The whole time, they ignore the notices and say "what could they really do?"
Then one day, the sheriff comes by and tells them to leave.
The "nice houses" thing is so true of what I'm seeing - neighborhoods with $500 - $1M+ homes, all in the middle of foreclosure proceedings for refusing, what, their portion of the golf fees for the CC?
I wonder how motivated they would be as sellers, though, considering the propensity for denial...
Won't know until I ask!