HOA Foreclosed But Now Fannie Mae Filled Lis Dependis

[Fred Pineda]

Hello Guys & Gals

Im from Miami Fl and I did my first deal (flip) 11 years ago. So now my wife and I are wanting to get back into it. We have excellent credit and have already lined up with a Hard Cash lender. 

So we ran into a scenario this past week, so here it is.

We found a condo at a great price. Comps are strong and our lender also looked at the numbers and said it was a solid one. We met up with the person who bought the condo from the HOA. The condo was foreclosed by the HOA. When doing our research we found that Fannie Mae notified the previous owner, the HOA, the city of miami, and everyone else that they are initiating a foreclosure on the property. The investor who bought did tell us that they didn't know much about the mortgage if any.

So my question is. Is Fannie Mae still the owner of the property even though it was sold in the court by the HOA to this investor? Has anyone bought properties like this in the past? Is this safe to pursue?

All comment, questions, hellos, what ever are welcomed. Thanks in advance to all of you.

F

[Wayne Brooks]

@Fred Pineda This is really simple, the seller is looking for a sucker.  When a property sells at an hoa foreclosure, the underlying mortgage Stays with the property, and as always occurs, the lender then forecloses, or already had the foreclosure in process when the hoa foreclosed.  If you buy this property, you will be foreclosed on along with the previous owner, and you will lose the house.  This is why buying a property thru an hoa foreclosure is a bad move, 99% of the time because they almost always have a mortgage, that is usually more than the property is worth.  BTW, you will never see the amount being foreclosed for online in the LP, but you will see the amount listed when the final judgment is recorded.  If you go to the court house and look at the actual foreclosure court file, it will show the amount of Principal (only) being foreclosed on.  This does not include accrued interest,mpreservation, property taxes paid, force placed insurance, etc.