Need Advice: Pre-foreclosure, Difficult HOA, Contract Sale
I've got a situation with a pre-foreclosure that maybe somebody can help me with.
Auction Date = 5/19/08
Asking Price = $214,900
Owes Lender = 173,280
HOA Lien = $8,000 and rising
Listed on market for several months. Quite a few written offers. However, sales didn't go through becasue HOA won't let the condo be a rental. Apparently they are capped.
I have made contact with the HOA president, Property Management Company, and was finally forwarded to the attorney the HOA has retained to deal with the situation. Kind of a zoo.
I proposed the Lease Option vs. Rental...which they promptly shot down. I even proposed to pay a portion of the HOA lien, of which 100% would be lost via the foreclosure sale. Still no deal.
If I purchase the home and sell it on contract, I am positive the HOA couldn't do anything about that. I am wondering if anybody can provide any insight or paperwork on how a contract sale would work.
In other words, Buyer would pay me a down payment and I would finance the rest at a set interest rate with a 1 year balloon. I am unsure about the deed in this type of sale.
Thanks in advance.