HOA Foreclosures and Shortsales

Homeowners Association or Condominium Association foreclosures present a unique set of problems when contemplating a short sale.

If you are currently working a shortsale with an active HOA foreclosure action, or - worse - a shortsale where the association has already taken back title to the property then you absolutely must have this information.

Category:

Education

Tags:

• HOA liens
• Short sales
• Shortsales
• Mr. Shortsale
• foreclosure

[mrshortsales]

If the high bidder and winner of the auction is someone other than the HOA then that person would own the property "subject to" the mortgage. Since HOA foreclosure judicial (courthouse) sales do not remove other liens, namely the mortgage lien/s, in reality there would be no other high bidder unless the value of the property is greater than the money owed on the loan, i.e. if there is equity.

Hope this helps.

[SuperUTuber007]

Very good information.  Thank you for sharing. Quick question: What if at the Foreclosure auction the High bidder is not the HOA but a third party? What are pro and cons of that this?