Foreclosure and the existing mortgage

[Sean Phillips]

All I came across some interesting items and I am trying to work it out and explain to the wife. I have found some HOA foreclosures in my area and actually when driving for dollars found an empty rental at the time and tracked down all that happened. So the HOA foreclosed and the house went to Sell Dec 2015. When I was tracking cases against the previous owner, the one the HOA foreclosed on I see a lis pendens against him in late 2016 from the Lender.

My Question is this.  Since the house was foreclosed and deeded backed in 2015 the Lender has no recourse to the property correct?

Now I am looking at one as well and in the documentation I see that any persons with interest in the property can make a claim up to 60 days after the sale.  So the next question is if the Lender files motions on the 59th day am I screwed?  If I take deed can I turn around and sell before the 60 day period??

Thanks in advance!

[Christopher Phillips]

@Sean Phillips There are occasions where HOAs have claimed priority, but courts have ruled it depends on the language in the HOA agreement. It would have to state something about having priority back to when the development was constructed. Otherwise, priority is always who comes first and fastest.

There are some states that give HOAs super lien status, so they would take priority. Colorado and Nevada are examples. In those cases, the HOA back dues up to a certain number of months must be paid back first before the other lien holders.

This is one of the reasons why lenders always want to review the HOA documents before lending on townhouses and condos.

If the HOA is going to do the auction, they would be the first group to speak with about possibly buying...