Are 2nd liens and other junior liens wiped out in an HOA foreclosure?

[Jennifer Silletto]

Hi,

I wanted to confirm if a 2nd lien or any other junior liens are wiped out after an HOA foreclosures?

[Steve Babiak]

Originally posted by @Jennifer Silletto:

In this instance, the 1st lien recorded in 1996 at the time of the purchase.  The Heloc recorded in 2008.  This property is in CA Chad Urbshott.  I will check the foreclosure document.

That is the recording of the obligation to pay the HOA, and it probably even pre-dates the first mortgage. So in most states, that does not give the HOA priority over the mortgages. Instead, the HOA has to get a judgment for unpaid dues, and that judgment is the filing that determines where the unpaid HOA gets in line for payment at a foreclosure action. So look to the date of the HOA judgment and use that date in setting lien priority.

This next link is the compilation that @Chad U. was referencing:

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