Purchasing an HOA Foreclosure

[Patrick Patel]

Hey guys, first time poster here!

I am somewhat new to REI, but completely new to HOA Foreclosures..
Just wanted your ideas, opinions, and to confirm my thoughts and beliefs on this subject.

I am in Florida, and am wanting to get more involved in the REI market down here. What I want to clear up and am interested in learning more about is buying HOA foreclosures at auctions.

For example, I have in front of me a beautiful, newer house where the HOA has a lien on it and it is in foreclosure, with an auction price starting at about $6500.. which is the HOA fees, attorney fees, etc that is owed. If I pay and I win, I get title to the property, correct? - at least until the bank forecloses on the property (which could be 6 months, one year, 2, 3, 5 yrs, whatever). The home is valued at about $220,000, annual taxes are $6000.

Now.. while I have this title, I must continue to pay HOA fees due, BUT I can live in this home and/or rent it out, correct? Again, until bank forecloses.

Do i also have to pay the property taxes? Will my credit be affected once the bank forecloses? I don't think so because I am not the borrower, I just have the title and a lien on the property because of HOA dues.

Last question.. once the bank forecloses, is it true they reimburse or agree to purchase the title back from me?

Please clarify these thoughts or shed some light, opinions, etc.
Your input is greatly appreciated and oif anything I just want to learn more about the subject.

Thanks everyone!

[Eric M.]

Patrick Patel, this strategy is so unethical and it wouldn't surprise me if it were ultimately found to be illegal in some way. (has anyone actually read all the documentation for these loans to see if something addresses this?)
There is no free ride. You may hear of people who are successfully doing it, but there have been lots of instances where people think they found a great scam to pull and then found out later it was really illegal or they somehow get burned when the jig is up. Just takes a while for the banks to get around to going after you.

When you buy the HOA lien, you are accepting legal responsibility for all the senior mortgage loans on that property. You are expected to pay them. If you purchase the junior lien with the intent to never pay the senior loan, I think it is very shady at the very least. I'd certainly never brag that I was doing it on a public board. It proves prior intent.

And yes, you have to pay the property taxes too because you own the property. In fact, it may shock you that you are supposed to pay all your obligations, not find gray loopholes to squirrel your way out of them.
What the heck is this country coming to?