You should have posted this 9 years ago...

Quote
Silverblue59
Hey All,

In my nine years as a buyer at Trustee Sales, I have avoided purchasing a foreclosing first position mortgage if there is a RECORDED Trustee's Deed for an HOA because I have yet to understand why the HOA would go through this process if they would, in effect, be eliminated by the foreclosure of a primary lienholder at a later date.

We all see concurrent NOD's and NTS's for primary liens and HOA's all the time, right? In most cases, the HOA never forecloses ahead of the primary lienholders. However, when an HOA does foreclose ahead of a concurrent primary lienholder's pending foreclosure, I am guessing that they rarely do anything to bring the primary lienholder current and take ownership of the property.....??

So, what does the HOA have to gain by foreclosing AND RECORDING a Trustee's Deed? My fear has always been that they are doing this for a reason and that the reason may be hidden in some obscure law which gives them the right to collect on their foreclosed deficiency, even though it is technically subordinate to the soon to foreclose, primary lienholder.....??

Looking forward to some savy insight....!!

Thx....!