Past HOA Foreclosure Now Bank Foreclosure Auction

[Lisa Marie]

Okay, here is an HOA foreclosure question/scenario:

An HOA forecloses on a property and is purchased at auction by an investment group for pennies. After this auction the bank (primary mortgage lender) then forecloses on the same property and is purchased by another investor at auction. My question is who is the legal owner? Is this what some call a "clouded" title? Also, the Title co. will not insure the purchase of the bank foreclosure due to past HOA foreclosure. Is it best to stay away from this type of auction property when there is a past HOA forceclosure?

Thanks!