HOA Can Take Possession?
This SS took a few months and we are finally ready to close next week. The atr just told me to get disclosures from the HOA; I applied online and paid the fee; the HOA called me saying that they took possession of the TH and were in the process of renting it out! The guy said HOA is owed $6500; they put a lien on the title. Since the foreclosure would take 6-7months they would rent the TH to recover their money!!
My atr tells me the title has a $2700 lien; they should have told me that earlier; thats extra money we need to bring to the closing! I also had a voice message from the HOA atr office saying that there is a $8000 lien! I will find out on Monday.
Well the lien got recorded after I started working on the SS; but someone should have informed me.
I did ask the HOA guy that called me if they would take a discount bec the lender will not like them getting paid when they are taking a loss; he was not sure. They know that their lien will get wiped out in foreclosure but they can recover the money by renting it during the 6-7 months it takes!
I asked him if they would fix up the place before renting it and he said " the place is OK; I was there to evict them".
Can the HOA (in IL) evict the owner for non payment and take possession?? Need to do some research!
Well, I found that HOA can foreclose on property for nonpayment of fees; that will be a dumb thing to do!
I call the HOA and asked if they would take a discount on the $8000 owed ($3500 HOA fees + $2200 atr fees etc..). No discount! They would rather let the bank foreclose and rent the unit at $1000/m than get a lower amount up front!!
Sorry I may be a little fuzzy today....
How can the HOA take possession and rent the unit if the bank forecloses?
Jim
The foreclosure could take 6-7-8 months. They rent the unit during the time to recover the money; my unit was vacant already. I think they can evict the owner (?) and then rent it.