All Forum Posts by: Kaynan Na

Quote from @Kaynan Na:

Quote from @Matt Devincenzo:

Your description doesn't make sense. Did you purchase a foreclosure on a 2nd position lien that was subordinate to a senior loan which is still in place? If so then I'd be surprised if the same scenario couldn't occur in OH. It's a pretty widely discussed issue with buying foreclosure auctions. If your foreclosure was for the first, then any subordinate liens should have been stripped. Or are the other liens completely unrelated to mortgages and are some other attachment? 

The HOA association put a lien on the property and it went up for foreclosure auction. I purchased it thinking it was a clean title with no mortgage attached . Comes to find out it had a mortgage on it.

This is for both properties .

Seems like this should have been easily discoverable with less than an hour of legwork with the county or town/city. Not to be a jerk here, but when buying due to an HOA forced sale it seems pretty basic that one would check for other liens.

Sorry to hear of your troubles.  As others have said - start a conversation with the lien holder(s)...

 Odd to me -  if it is a foreclosure auction you bought them from them what did they foreclose on to begin with?   If it weren't the mortgages, was it something else?  a second mortgage only?  the HOA ? contractor lien?  but you should always do a quick title preview to know what is on a home you might purchase at any tax sale or foreclosure sale.   Make sure what you are getting is what you know about.

@Kaynan Na

Very common in Florida for hoa to foreclose

First lenders since equity is in the property probably won’t do much negotiating. Doesn’t hurt to try

I assume you did not engage an attorney before bidding or run a title report before bidding on these assets as Florida is also a super lien state

Try to negotiate with the bank that finance the house

@Hal Thompson have you had any success with this? has the bank worked with you to sell the first mortgage to you at a discount? seems they have no real benefit in doing that if the home is worth more than is owed. Id assume if it wasnt worth more than is owed that you wouldnt of purchased it at the auction. any info would be greatly appreciated!

Just a public reminder.

Before buying a tax deed or foreclosure from the county auction, do your due diligence.  

You need to know what liens and judgments encumber the property and which lien holders are actually foreclosing.  

You must understand how the liens and judgments interact with each other, which fall off after the foreclosure. Then it's super important to know how to deal with the property AFTER your winning bid: how to clear the title and how to negotiate left-over encumbrances.  

If you don't know how to do these things, you are literally throwing money out the window into a hurricane.  

There are shortcuts to learning these things, but you will need to get educated, and you will need to invest in yourself, time and money.  

I can't tell you how many investors come to get a title search AFTER they win the property instead of a few days before they bid.  One costs $50, and the other costs $20,000+. It's all about timing.

The ones who are educated and use the tools available to shop at the county auctions can easily get deals at 30%+ below market value.  I see it every day.

@Kaynan Na - I don't mean to harp on your experience, but you need help, you need to get help quickly if you have any chance of recouping your investment.  Don't procrastinate, and do not take help from anyone other than an equity recovery specialist, they are hard to find.

Quote from @Kaynan Na:

Quote from @Matt Devincenzo:

Your description doesn't make sense. Did you purchase a foreclosure on a 2nd position lien that was subordinate to a senior loan which is still in place? If so then I'd be surprised if the same scenario couldn't occur in OH. It's a pretty widely discussed issue with buying foreclosure auctions. If your foreclosure was for the first, then any subordinate liens should have been stripped. Or are the other liens completely unrelated to mortgages and are some other attachment? 

The HOA association put a lien on the property and it went up for foreclosure auction. I purchased it thinking it was a clean title with no mortgage attached . Comes to find out it had a mortgage on it.

This is for both properties .

Seems like this should have been easily discoverable with less than an hour of legwork with the county or town/city. Not to be a jerk here, but when buying due to an HOA forced sale it seems pretty basic that one would check for other liens.

Sorry to hear of your troubles.  As others have said - start a conversation with the lien holder(s)...

Your description doesn't make sense. Did you purchase a foreclosure on a 2nd position lien that was subordinate to a senior loan which is still in place? If so then I'd be surprised if the same scenario couldn't occur in OH. It's a pretty widely discussed issue with buying foreclosure auctions. If your foreclosure was for the first, then any subordinate liens should have been stripped. Or are the other liens completely unrelated to mortgages and are some other attachment? 

There are ways to deal with these situations, and it depends on the property and the lien holder, but it's possible to do some pretty incredible things if you are willing to invest a little more in legal costs to close the gap on your losses.