HOA Quit ClaimDeed For Cash No Warranty of Title worth the Risk?

[José Rivera]

Hello, I have a question on a possible deal........

My HOA has taken record title of a unit and is going to sell via Auction. The HOA is not guaranteeing clear title, only a as is quit claim deed for cash sale. I did some research with at title company and there is an unreleased mortgage in favor of a credit union, the previous owner went bankrupt, the title company would not review the bankruptcy unless I purchase the property. I am new to foreclosures and I am not sure if this is worth the risk. How would I find out if I would be responsible for the "unreleased mortgage" if I were to win the bid for this home? or if the mortgage was released in the bankruptcy? Is this worth the risk?

[Jay Hinrichs]

not an expert there on this issue but I would bet 97% the loan survives and your taking title sub too

and the first lender once they get a relief of stay will then forclose and wipe you out.

where I see folks use these HOA deals is simply to rip rents.. get into title because as we know you cannot rent something you do not have title to.. keep the rent for as long as you have ownership until your wiped out.

I have actually seen a few were the property was free and clear and the owner just left stopped paying the HOA someone bid on the HOA and owns it free and clear.. client of mine did that on two townhouses in CA... unfortunately there was an issue with the subterranean drainage and after about 10 years of renting them out they slide down the hill and were condemned but I am pretty sure it was still a profit for him.