Did I just buy an REO property for $2,000?

[Jimmy Le]

Hey BP folks, I recently purchased a property at the Houston Texas December foreclosure auction and was wondering if anyone had insight on a similar situation.... Looks like first mortgage foreclosed on this house back in 2014 where the bank took it back and wiped out all other liens- so it’s been an REO for three years or so. Looks like the bank didn’t transfer the HOA into their name and did not keep up with the payments. This past week, the HOA foreclosed on the previous owner (not the bank - this may play an important detail) and I purchased the property at the auction for less than $5k. The CMAs for this property is around $125k. I did visit the property and it looks like it’s gonna need some work, no formal inspection but possibly $20-30k as a ball park estimate. During the visit, I noticed the property has been winterized and that the lawn is being maintained, either by the HOA or the bank. Some of the questions I have are: What is the likelihood the bank knows and will redeem the property within the 180 day timeframe? And I’m the meantime, do I fix it up and rent it out or wait until the redemption period is over? And when the redemption period passes, does the HOA judgement foreclosure against the previous homeowner and not the bank convey clear title? Thanks for any insights and information in advance! Jimmy