Texas HOA foreclosure risks?

[Joehn B.]

Hi, wanted to better understand the risks of buying a HOA foreclosure in TEXAS. The property I am looking at has equity and only a purchase money loan (1st mortgage).

I understand the basics, Wining the bid, gets me the deed subject to the existing loan.  Owner has 180 days to redeem and my purchase price would be paid back if he does so.

I see two key risks I am worried about:

1) Owner stops paying the mortgage and bank initiates foreclosure. I would have no way to stop the Bank foreclosure during the HOA redemption period and could get wiped out. Would a bank delay foreclosure during the redemption window?

I understand a bank won't likely start a foreclosure until payments are over 180 days late, but what if the owner is already 180 days late and foreclosure notice is about to be posted?

2) Bank notices sale and invokes DOS, giving previous owner 30 days to PIF. Again a scenario where I get wiped out unless I explain to them the owner still has a redemption interest and to delay DOS for 6 months?

The only way I see mitigating these risks is getting the previous owner to waive redemption for $$, not a guarantee ahead of the auction.

I did find a case here on BP where the HOA buyer got wiped out a month into the redemption period by the bank foreclosure! Auch

How would one mitigate these risks?