Need help with condo liens

[CJ Moulton]

Hello All,

I have been doing some digging in the Foreclosure world and found a Condo in my area. Everything seemed to be ok with it, I even passed by the property physically to see if I can see anything out of the ordinary. Thats when I started to look at the title of the condo. I found two condo liens attached to the property.

Based on the dates and documentation, it seemed as if the first condo lien was filed, and the resident started to pay off the debt. (Which was around $11,000 in unpaid HOA fees) Then nearly two years later, which would be now, another condo lien is filed and the amount due is $9,700.

Let's say I'm the lucky investor who gets this property with a winning bid of $5,000. 

1. Would the condo liens survive foreclosure?

2. If they do, does my bid go toward the unpaid debt?

3. If the liens are my responsibility after auction, will I have to pay for those up front?

Any insight on these three questions is greatly appreciated! Much love.

[Tom Gimer]

The answer to your question depends upon the location of the property... which in turn determines lien priority.

First figure out what lien is being foreclosed -- this should be clear from the advertisement. Junior liens get extinguished unless they have super-priority. Any that survive need to be paid or they can also be foreclosed.

[Wayne Brooks]

@CJ Moulton
First, if you “win” a condo auction for $5k, you are missing something serious…..usually a mtg that stays attached. Auctions are Very competitive and for near market value.

As mentioned, whether the condo lien survives depends on the state law.  Here in FL the third party bidder at an mtg foreclosure inherits all the condo liens.