Risk of owning a note in first position when HOA has a judgement

[Sandy Uhlmann]

What happens if you own a note in first position that the HOA has a judgement against?

If it is not a super lien state how does this effect the first lienholder? If the HOA forecloses, is it the same as any other junior lien foreclosing? If the HOA forecloses, can the first then pay the HOA the fees? Is the first ever better off filing for FC because the homeowner is in violation of their mortgage agreement by not paying the HOA dues?

Thanks in advance for educating me!

[Mike Hartzog]

@Andy Mirza

You are correct.  I misstated that point in my response.  I guess I should proof read my posts more carefully.  Thanks for the correction.