All Forum Posts by: Jennifer Silletto

@Wayne Brooks Yea I was thinking why not make it easier on myself and go speak to the homeowner. Of course, if they will answer the door at this point is another story. It's a wait game and a lot of patience as the auctions keep on getting postponed. Yes this is an auction for HOA lien. Any tips on making a deal with the homeowner? For me, even if it is not to buy the home, I can certainly help them list it and sell the home.

There are a lot of postponements now in So Cal auctions. I had my eye out on 3 HOA lien auctions today and they all got postponed. Some more than once already.

@Jeff S. Homeowner stopped paying the HOA beginning July 2005 - and ending in July 2009. Owed $2396. Homeowner must have brought current again and then became delinquent as the HOA filed on 6/9/14 and states homeowner was delinquent through June 2014 owing $1830 of assessments (of which HOA dues are $60/month). So I don't know when or if HO stopped paying the mortgage, I would assume so but the bank has not filed an NOD. HO got the HELOC on 5/29/08 and HOA recorded delinquent lien on 2/19/09. Many unanswered questions as to how much is owed to the 2 senior liens. That's why these auctions can reap large returns but very risky too!

@Jeff S. 1st lien is $224k (taken out in 1996)

2nd lien is a heloc up to $250k (so who knows if it got maxed out or not)

HOA delinquency is $6300.

 There was a 4 BR 3 bath 2700 sq ft home sold in 12/14 on the same street for $700k.

This home going to auction is a 5 BR 3.5 bathroom and 2555 sq ft.  So we are looking at about $200k in equity.

So I had title rep pull all the documents and recording date is as follows.

1. 1996 the 1st lien recorded

2. 2008 2nd (heloc) recorded

3. 2009 HOA recorded delinquency

4. June 2014 HOA recorded another delinquent assessment

5. Aug 2014 HOA records NOD

6. Dec 2014 HOA records NTS

So that means HOA is junior to the 1st and 2nd mortgage liens correct? Do you @Steve Babiak and @Chad Urbshott find that the HOA's are not recording after a buyer has gotten a loan to purchase a property so that the HOA is in 2nd position?

Thank you @Steve Babiak

This property is in CA @Chad Urbshott.

In this instance, the 1st lien recorded in 1996 at the time of the purchase.  The Heloc recorded in 2008.  This property is in CA Chad Urbshott.  I will check the foreclosure document.

Hi,

I wanted to confirm if a 2nd lien or any other junior liens are wiped out after an HOA foreclosures?

@David Cheung his reasoning for not using his own funds is because he was/is wiped out from a divorce.  I'm not going to judge or ask further details, who knows what the reasons are and they could be legitimate.   I make good money but I also have a lot of expenses marketing and money comes in and it goes out.   I am giving him the benefit of the doubt.  But still making sure I am checking everything out that is how I found this site.  Nothing you can't google, lol.  Thanks for the input!

@Robert Chuang At first there was a $4900 service charge but no split of profits.   The deal now is no service fee and a 50/50 split. 

@Jay Hinrichs Just found out from this operator that the 1st lien has an auction date set for January 2015. The HOA lien auction has been postponed to 12/23/14. The NTS that was filed in 11/13 by the 1st lien holder showed a Final Judgement Amount of $337,629, so I'm sure if they have not paid since that date, the amount is higher. He said he thinks we should bring the loan current so we need another $7k-$8k. I don't know where he got those numbers from, because that isn't going to be the amount to bring the loan current if the original loan balance was $330k with a deed of trust recorded in in 9/12/11.

Even if we win the HOA bid, we can't sell for 90 days and 1st lien auction is in 1/15, I would think this will deter any other bidders. My sales comparables show the property's market value around $700k-$715k.

     I don't mind paying someone what is fair, I guess what I am trying to find out is am I being taken advantage of?  I actually am bringing more to the table, not just the financing because I too have been researching the property to find out what liens are on it and pulling up recorded documents and showing him and doing my own due diligence.