COOP HOA sold property to me, that they offically didnt own

[Tom Server]

Want your thoughts on this. So, I am in the middle of purchasing a co-op unit for a flip. The property is being sold as-is / cash only by the management/Hoa of the development. The original owner stopped paying the taxes and HOA.  The property is a rehab and in need of new everything so i couldn't get a mortgage.  I put a security deposit down of 10k. I've hired a title agency for the closing. So, I'm waiting and I'm asking what the status is and not getting any response from anyone. My realtor who is also the selling agent, said she tried getting info form the lawyers and the Hoa. but no one is giving her a straight answer. They first said they were waiting on court papers, then the following week they said a court date. I don't know what to believe now. It's been 3 months. everyone is in the dark. I reached out to the lawyer of the Hoa for information on Thursday and still haven't heard anything back from them...

My friend who is an attorney did some research for me.  The property owner defaulted on the property and owed back taxes and HOA fees ... The Hoa won in court for the back payments, but I believe the courts denied the Hoa of getting the shares back and taking ownership

So, I'm thinking they illegally sold me the property.  The Hoa weren't full owners of the property yet.

Now what do I do?  Like I said I still haven't heard back from the Hoa lawyers asking for transparency. If that is the case people are saying I could sue, but do I sue for ?   I just wanted to have a quick flip and make 40k.   I was also thinking of telling them instead to reduce the price 10k and ill wait til all the court stuff is done and the HOA takes full ownership

THOUHGTS?

  

[Peter Walther]

I'm a little confused.  With a co-op you don't own the unit, you own shares in the corp that owns the building and all the units with the shares having an exclusive right to use a particular unit.  Generally, you can't get a mortgage since you don't own real property to put a lien on.  You get a commercial loan with the shares being the security for the loan.  Since there's no mortgage there's no foreclosure only an action on the Note asking for transfer of the shares.  If you get a title policy, it will insure your leasehold interest not a fee.

Also, I believe there's no HOA, only a BODs of the corporation that handles its administration. There may be a management company but no HOA.