HOA Forclosure
We purchased a HOA forclosure, no one contested the sale and title was given to us. We have issued the former owners the 3 day vacate notice. However, we notice that the wife has reopend the case with the filing of a "motion to stay". Can she stay the forcloure that has already taken place and title pasted to the new owner?
Yes, of course she can file the motion to stay, but it will decided by the Judge who hears the case, whether the motion will be granted or not.
A lot depends on if the HOA had the right to foreclose and did they do the steps properly according to your state’s laws.
John (LV)
This is what I thought. So, can you tell me how the 1st lein will play out. Do we contact the lendor or will they call us? Do we make the monthly payments?
Only an attorney can “advise†you on what to do, especially in a potential court situation, so I would be presenting this to your attorney for some advice.
If you pay the mortgage and you find out the foreclosure was overturned, will you be able to get your money back? I’m assuming that this is on your mind and should be addressed to your attorney.
John (LV)
yes, it is on my mind. However, I know that the HOA followed the law, its happend too many times. We are obtaining the writ of possition on Monday. this is all new to us and I dont know really what to do next. We will be contacting an atty on Monday. I just want to know if anyone had any dealings in this type of sale. Thanks for your comments.
How can she motion to stay, AFTER the Sheriff sale?
I live in Florida. We have very strick HOA laws. Yes, the HOA attorney followed State Statue and proceedure for forclosure.
The previous owner has been though this HOA deal sever times in the past, I dont now why they let this one go this far but they did. They were informed by the HOA attorney and the court on every step of the process leading up to the court house sale and now they want to protest. We are moving forward with the eviction on Monday.
Purchase me.....
How did ths work out today?
Well, we filed the "writ" and it appears (from a drive by) that they are moving out of the house. We will see an attorney tomorrow for guidance on the mortage. Thanks for asking.
If the HOA lien was a priority lien the foreclosure may have extinguished the mortgage.
In Florida, by statute, Homeowner Association liens cannot foreclose out a lien or mortgage that existed before the LP was filed.
I would suggest that you have a thorough title search done before you spend any further money on this property. All mortgages, liens, taxes and other encumbrances still exist on this property.
Most HOA association foreclosures in Florida are worth NOTHING. Bot novice investors still bid on them and run the price up...the WINNER is the guy who was OUTBID!!! The high bidder usually loses everything.
Not very pretty...but factual.
[addsig]
It appears your correct bargain76. Again this was done without my knowing. it appears that the bank was in the middle of foreclosure had filed a motion for summary judgment but not submitted the paperwork for the judges signature. The bank started the foreclosure 11-09 and submitted the motion in 8-10 but nothing has been done do date. The subdivisions dues were covered by the HOA foreclosure sale. The neighborhood dues are still outstanding.
OK with all that said, what now? Is it now possible for us to negotiate with the bank or should be just accept our lost and forget it all? The house is valued by the tax appraisal website at $250,000 the note is $327,000. Is it a good idea to approach the bank? What do we say, what is a good offer? Any help is appreciated.
OMG, the property has a personal tax lein of about $80,000. Can this be soild with that lein. What would the bank do with this tax lein.
OK....You will have a Deed to the property, subject to, it seems, the 1st Mortgage, an $ 80K tax lien, aasociation dues and WHO KNOWS what else. Totally upside down.
Perhaps your ONLY potential to recoup some of your investment is to rent out the property until the very slow moving court system forecloses on the property...it could take months...it could take years.
Worth a try?
[addsig]
purchaseme,
In reading your post above, I think you have some confusion about deeds.
A deed is not like a car title that you only get when the car was paid in full, or stamped with the lien holder info. You will receive a deed, a piece of paper showing ownership, to a property even if there were none, one or many liens attached to the property.
So yes, the “title†that was stamped by the clerk’s office “IS†“probably goodâ€, just subject to the attached liens.
Depending upon the type of liens currently on the property, the bank may or may not be required to pay them if they foreclose on the property. The bank may not be subject to the same articles of law that the HOA is subject to and therefore may have some of those liens eliminated.
If you haven’t already done so, talk to that attorney of yours and see about getting a title/lien search done. I realize that you know this should have been done before you purchased the property, but you don’t need any more surprises down the road.
John (LV)
Thanks all of you, really thank you for your advice/help/comments. We are trying to get back in to meet with the attorney ASAP this week.
Good luck. Let us know if anything new develops. What County are you in?
I will keep you posted. Hillsboroughcounty.
Redemption is not in all states. Its about as likely as flying deer for someone to redeem their house. They are too far under after its taken.