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Updated about 7 years ago on . Most recent reply

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Daniel Beltran
  • Banker
  • Las Vegas, NV
0
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HOA Foreclosure - Wholesaling

Daniel Beltran
  • Banker
  • Las Vegas, NV
Posted

I'm from Las Vegas, NV and I'm currently trying to get my first wholesale deal. So far I have come across two different properties that are HOA Foreclosed. I was talking with a cash buyer at a REIA meeting and they said to be careful about HOA foreclosed homes since not many people are buying them. I wanted to know why it's a bad idea since I can't seem to find the answer!!!

This is the description of a home from a seller:
This was an HOA foreclosed property and the 60-day redemption period is over and I bought it from the company that bought it at the auction after the 60 period was over. You can't get title insurance on the property without further work. The superior part of the HOA lien was not paid by the mortgage company. This is great if you understand or research what it means. Title is in my name and will be transferred with a deed a County recorders office.. The HOA lien was satisfied. Don't get an agent/broker to call me, if you're not man enough to call get an attorney to call.

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Jon Lee
  • Investor
  • Las Vegas, NV
241
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471
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Jon Lee
  • Investor
  • Las Vegas, NV
Replied

Hi @Daniel Beltran...welcome to the investing game.  Like @Robert Rayford said, back in the day the HOA foreclosure was ideal for the many buy & hold investors because the cost was so low it mitigated much of the risk. That being said, things have changed some and only the most experienced investors are working with them (without losing multiple properties to the banks). The issue is that you have to satisfy the bank debt AND still get a disclaimer deed form the original seller before the title company can even consider issuing traditional title insurance. Mt partner and I still acquire HOA properties (at the right price) and work with a couple of investors who take in the risk (with lots of attorneys on there team). If you want to connect with me about it to explore what's possible...just reach out to me at my contact information below.

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