@Taylor Larkin I agree with the other responses, try to work with her since she was up front with you, but make sure you are not putting yourself out either because you could take recourse according to the lease.I would try to work with her and definitely get any agreement in writing.

These responses help shape my direction.

I'm not sure if you're still wanting responses on this post but I'm working with a lending broker based out of Orange County and have some insight from my experiences right now. 

Thanks for your response. 

@Matt Snow Wow, someone after all this time finally answered my question in full detail with not only legitimate responses but intelligent ones which are cited sources.

I have asked this question and get the same response every time. 

So Wayne are you saying that even though the HOA foreclosed, and sold at auction to a 3rd party, then any amount above the sale price up to their FJ is still responsibility of the 1st lien foreclosure buyer? 

The HOA is responsible for the exterior of the building including the roof and drywall in case of the water leak for example.This is a rental property and I don't think I must have all coverages.

Bryan,Thanks for the response.

Thank you for the response I will be sure to reach out!