All Forum Posts by: Account Closed

Hi Guys, I would like to get some advice regarding my mortgage and whether I should refi or leave the payment as it is. My real estate taxes and HOA are about to increase . I receive $1450 for rent.

My currently mortgage has a principal balance of $115k with 4% interest. I had the mortgage since 2012 and an original loan of $168k. I paid down the principal down substantially and my monthly payment is $1204. I expect this to increase because the HOA dues and real estate taxes will bring the new payment to $ 1416. If I refinance the payment will be $1018. I really just want positive cash flow on a monthly basis, but will i be increasing my debt in the long term with refinancing at 4.5% ? I have 18 months left on my current mortgage to continue paying Mortgage Insurance that will total $2532. I will have to buy the rate down at $1500 to get it to 4.5 %. The lender is paying ALL closing costs. They are not adding it to the back end of the loan either. Is it worth it ?

I am an investor and the house that I like, currently is occupied by a tenant who is taking exceptional care of the premise.  It is immaculate and well cared for by the tenants.  They are good tenant, and have expressed an interest in staying long term. and I want them to stay should I win the auction.

I just don't want to inherit any unknown debts/liens/issue .Can someone tell me, how does the bank's obligation to me change when it comes to an occupied home ? Do they have to pay off the HOA liens, municipal liens, or any issues that are clouding the title before they hand it over to me via Special Warranty Deed?

I have looked at a property that I am interested in bidding for. I looked up the records and the lis pendens listed the current homeowner and HOA association as defendant. When I check for liens against the property, I did not see any from the HOA. This has left me perplexed. I think that the HOA maybe current, and the bank listed them as defendants as a precautionary measure. Am I wrong ? Does this happen regularly ?

I am interested in buying a home from HomeSearch and I have reviewed the Lis Pendens from the court records. The LisPendens did include the HOA as a defendant. The bank was given has a certificate of title on 03/2014.

So I am just unsure if i will be responsible for paying off the HOA liens that were filed. The HOA filed liens on 01/2007 for $850, 03/2008 for $2068, and 12/2011 for $ 8300. I assume it reached to $8300 because of a 18% interest per annum for unpaid debt.

If I win the bid, can the HOA foreclose on me since the house will have equity to them, or was the HOA lien wiped out during the Lis Pendens, or will they send me an updated bill ?

@Richard W. I am sorry to hear about his situation you had to face and I know how to fell especially when you work hard for your money. On a separate note, would you be able to reduce your future tax burden for years to come by claming this as some sort of investment loss. I am not sure of the phrase but I believe you can reduce your tax burden with this loss. If you can, then is a positive for you.  Is there anybody that can say is Fadi can use this loss as a tax benefit ?

I am looking at a property on Homesearch.com and I have done some research to find out who the lien holders are. I see that there is a HOA lien and two mortgagors. The first mortgagor has already foreclosed on the home, and the court recently issues a COT. The HOA filed liens on 2/18/2007, 2/28/2008 and 12/08/2011 . The bank filed their Lis Pendens on 5/23/2008 and received summary final judgment on 9/23/2008 for 335k. The house was sold for $390 back in 2005. So I assume this is the 1st mortgagor that is foreclosing, but it could be the second, I really don't know. The house is worth about 220k now. The second mortgage has a balance of 85k. HOA liens are about 12k.

 My questions are :

1. If I win this bid at auction from Nationstar who is selling it, will they pay off the second mortgage, and the HOA liens, in order to grant me a SWD or equivalent ?

2. Why didn't the HOA foreclose first ? Many HOA's in Florida do this all the time, and get paid at the courthouse.

3. If I win the bid and take possession of the house, will the second mortgage or HOA then foreclose on me at a later time ?

@Brian Burke is there a way that i could research the bankruptcy file of the homeowner. I only saw a suggestion of bankruptcy on the comptroller website, but can i access it on a federal website since they filed chapter 11 ?

@Brian Burke

HI Brian, thanks for sharing such an informative post of your experience, with other BP members. I wasn't too sure about what you mean by other title 'gotchas'. I am unsure if you meant that the senior lien isn't always the lien the matter the most.

Secondly, what kind of reports should i buy if before i bid on a house. I just want to know monetary risk involved. I don't mind paying off second mortgages and liens, so long as the price is right. Would you recommend to first pay for a search that only shows outstanding balances and liens etc, against the property versus  a report that shows who the previous owners were ?

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I am just curious to know if anyone has ever lost over 100k, by bidding on a property with multiple problems that you didn't know existed. For example, liens from the HOA, local municipality, claims from uncle Sam, cousin Harry, ex spouse, 2nd mortgage and uncle Bob etc etc etc. You obviously thought you were getting a bargain but inherited the problems, that became your responsibility.

Can you please share your experience, how it happened , and what did you go to mitigate the circumstance. Does any body have any advise to share in order, to avoid a huge financial mistake, when using the online auctions. Thanks in advance.