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Updated almost 6 years ago on . Most recent reply

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Nancy Bachety
  • Rental Property Investor
  • Sag Harbor, NY
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HOA foreclosure auction

Nancy Bachety
  • Rental Property Investor
  • Sag Harbor, NY
Posted

Happy New Year! If a home is going to foreclosure auction for HOA fees and there are no other liens on the property are there other open items that could be of concern?

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Rich Baer
  • Real Estate Investment Attorney
  • Kingsville, MD
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Rich Baer
  • Real Estate Investment Attorney
  • Kingsville, MD
Replied

@Nancy Bachety

Yes. The buyer assumes all prior mortgages and judicial judgments. I would recommend calling the foreclosure Trustees to see if they would share lien info. If that fails and you have enough time, engage a title company or real estate lawyer to do a title search. It is important to be forewarned as you don't want to buy and find out you overbid due to prior encumbrances. I have seen it happen many times.

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