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September 30, 2015 08:12AM
There is probably a misunderstanding. If the HOA goes through a proper foreclosure, they WILL eventually have control of the property. At the same time, the HOA will ultimately suffer from the consequences of the defaulting 1st and/or 2nd Trust Deeds. It may seem weird that the HOA chooses to foreclose even though the HOA will eventually get wiped out by the 1st or 2nd TD. But in reality, by foreclosing, the HOA is able to purge out the deadbeat/delinquent homeowner and create movement on the property. After a proper foreclosure (and redemption period), the HOA may be able to rent the condo out for 6 to 12 months before the 1st or 2nd TD forecloses, which will allow the HOA to recoup some of it's losses.

If the HOA doesn't take foreclosure action, the deadbeat owner/occupant might get to live there without paying their fair share of HOA dues for many years (given some of the 1st and 2nd TD/lenders are extremely slow to take foreclosure action). The HOA foreclosure action forces the situation to move forward and ultimately moves towards in a new homeowner moving in that can pay the HOA dues on time and help keep the HOA healthy.
Subject Author Views Posted

HOA foreclosing

CCinOC 5698 September 09, 2015 12:40AM

Re: HOA foreclosing

Mer 2774 September 10, 2015 01:54PM

Re: HOA foreclosing

CCinOC 2782 September 10, 2015 11:52PM

Re: HOA foreclosing

Trebor 2838 September 11, 2015 08:53AM

Re: HOA foreclosing

CCinOC 2717 September 11, 2015 04:46PM

Re: HOA foreclosing

CCinOC 2712 September 11, 2015 06:47PM

Re: HOA foreclosing

Island Time 2851 September 30, 2015 08:12AM

Re: HOA foreclosing

CCinOC 2624 October 12, 2015 09:11AM



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