Scenario Question..........

[Erick V.]

I buy an HOA lien through foreclosure and get on title. If the borrower is deceased, and the 1st lien payoff balance is less than market value, can I sell the property?

Or if the payoff balance is more than MV and I have to do a short sale, is the bank allowed to accept a short sale or is a probate required first?

[Dion DePaoli]

If a Certificate of Title has been issued to you, you are the new titled owner subject to any superior liens.  If the Mortgagee agrees to satisfy their mortgage for less than what is due, then you are left as the titled owner provided no other or all other liens have also been handled which are superior to your interests.  

Now, just because you have title does not mean you have possession.  So evictions may be needed to remove the borrower or if a tenant is present you will have to deal with that properly as well.  If it was done properly, filing for a writ of possession is not that big of a deal and can be processed right after the CT.  If a tenant is present other laws apply and more time will be mandated.  

You will or should go look to the HOA foreclosure and ensure it was properly executed around the details of the death. If it is not done properly it can be over turned. Most notably, if the HOA failed to name the heirs or survivors properly in the FC case thus they were denied their legal right to redeem which would over turn the sale. If it was done right, then there is nothing to fear.