court house auction question

[Chris Copenhaver]

I'm looking to purchase a home coming up at the court house auction. It has already been sold once as a HOA foreclosure and is now owned by a LLC. Now the first position lender is foreclosing. I know for the most part the new owner who purchased the HOA foreclosure would be wiped out. Would the current LLC owner have any right to challenge me if I were to win?

My concern is that I have been told if the HOA docs have certain language that it could wipe out the first position mortgage. I have an acquaintance who buys HOA foreclosure with this certain verbage so I am scared to purchase anything where the HOA has already forclosed. In Tampa this makes up a bunch of the foreclosures auctions I search. Any insight would be greatly appreciated.

[Wayne Brooks]

@Chad U. As I assume you know, any outstanding HOA debt, whether a lien has been filed or not, becomes the responsibility of a third party buyer at a mtg foreclosure auction.

Also, my understanding as per my attorney, even if you buying at an HOA foreclosure auction where they set the minimum bid lower than the judgment, the buyer is still responsible for the difference....HOA debts stay with property regardless.

As to HOA debts/liens when the bank buys it back at their own foreclosure auction.....the bank is protected by the Safe Harbor statute passed in 2008 I believe.....they owe only 1% of the original mtg or 12 mo.s of dues, whichever is less, and the HOA has to accept it as full payment.