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Updated about 2 years ago on . Most recent reply

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Margo M.
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Auction property - foreclosed due to HOA - try to bid or stay away?

Margo M.
Posted

I have an opportunity to bid (by 5pm today) on an HOA foreclosed property as a post-auction owner-occupier. Do I proceed? Here are the problems:

1). The foreclosed owner has 45 days to redeem the property by paying around $20k to the HOA. (She is in a fight with them-I don't know her.)

2) the first lien/mortgage is doable as a pay off at $210k. Property is worth $600-630k.

3). city mandates it rents to low-income/moderate and/or may require a $90k payout under rent control

4).auction winner is an LLC owned by a foreclosure pro and has already filed a lawsuit on it at $375k to cloud the title.

Try to bid or stay away? Thank you!

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