HOA forclosures

[Ty Whitman]

I was wondering what advice people here might have about bidding on HOA foreclosure auctions. If an HOA has a lien against a property and gets a judgment, and then attempts to foreclose based on that lien, is it really possible to bid on that lien and take title to the property, assuming there are no prior judgments and that there is not a foreclosure in the works? How big of a difference would it make if the property were otherwise paid off, if it had a loan with an equity margin, or it had a loan and was upside down? I have zero actual experience with this but have come across several HOA foreclosure auctions while looking around, and it always piques my interest. Any thought would be appreciated!

[Chad U.]

Hi Ty,

You've got to be very careful there aren't 1st lien positions on the properties, in most cases there are and you could wind up buying a HOA lien for cheap and then owing far more than that.

See this link below for everything you need to know regarding purchasing from auctions.  

http://www.biggerpockets.com/forums/41/topics/6897...