HOA foreclosure guidance

[Harsh Dangaria]

Hello BP members!

I am a newbie and have looked into RE investing for a long time.

Last week, I have purchased a home through a HOA foreclosure in FL. Based on my research on the property can the forum please provide some guidance.

Basic Info:  Purchased at auction for for ~$5000.  The property has been vacant for several months, and needs (~$10K worth) of rehabbing. There is a primary outstanding mortgage on it (unknown outstanding balance, terms, etc.). Original loan value of $163K taken out in 12/2009 with Bank of America. Since then the mortgage has been reassigned by BoA to another lender (Nationstar Mortgage). Nationstar did file a lis pendens 1 year ago for foreclosure (unknown auction date). Unknown contact detail of prior owner. No other title problems.

To be honest, I was not aware of riskiness of HOA foreclosure before getting into this. Stupidity tax. However, based on the zillow estimate the home is worth ~$170K.

My questions:

- option #1: rent it out on a month to month basis until the bank forecloses with full disclosure to the tenant. I could theoretically get my money and rehab costs back in ~ 1 year assuming it rents for $1500 per month (current market rate).  Does the bank have any obligations to inform me and the tenant on planned auction date? If so, what is the obligatory notice duration? Any good strategies to postpone auction? In case the bank or a 3rd party wins the auction, do they have to give tenant any notice before they are asked to move out? If so, what is the obligatory notice duration?

- option #2: is to assume the current mortgage under my name. How likely are the banks willing to do so? Do I have any leverage? Can I prevent the banks from going through foreclosure.The property does have equity in it (based on loan origination date of 2009 for a value lower than the current market value). I am more interested in holding this property for long term and prefer this option over the 1st option.

Is there anything else I can do? Anything else I am missing?  

Thanks,

HD