Purchase an HOA Lien?(On purpose this time)

[Tim Czarkowski]

I had someone bring up an interesting business plan after my recent trouble with purchasing a HOA lien that was thought to be a first mortgage. The idea would be to purchase HOA Liens and then rent the property out till the first mortgage is foreclosed. As long as the first mortgage foreclosure process was not started there should be about a 2-3 year window to cover the cost of the lien and make a profit. The tenant would be protected by having a long term lease in case the bank foreclosed earlier than expected. I thought it was a creative way of making money with the foreclosure mess. What are the problems with it?

[Account Closed]

Tim Czarkowski You are in a judicial foreclosure state which is totally different from my experiences in CA. I'm curious that the attorneys are saying that you won't be noticed of a pending foreclosure. I thought everyone was named and served in a judicial foreclosure suit: jr lenders, lienholders, borrowers and any owners of record. In fact, how could it be otherwise? I'd check further into that. Maybe you mean something different by noticing. Indeed, the senior lenders don't have to communicate with you as the new owner via a foreclosure. You haven't yet checked for a lis pendens? Or is this for property to be purchased in the future?

I find it hard to believe that lenders in FL have no recourse to recover collateral other than a 3 year foreclosure process. Is that because of a backlogged court system? So does that mean borrowers in FL are just taking a 3 year break from paying for housing?