InnoVest Resource Management's Foreclosure Forum

Home Discussion Board "Hands-On" Training Title Holding Trust Speaking Schedule Store Foreclosure Codes 50 State Resource Data Foreclosure Glossary Foreclosure Statistics 60+ Yrs Interest Rates Fillable Forms Archived Articles Dingbat Retirement Plan Links Contact / Map Home

[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] Re: HOA Auction - Who Takes Possession? Posted by Jk on September 17, 2003 at 10:39 PM In Reply to: Re: HOA Auction - Who Takes Possession? posted by Ray on September 16, 2003 at 11:06 AM : : : : : Owner is current on the mortgage but defaulted on HOA and taxes. HOA has filed NOD and a trustee auction has been scheduled. Will the lender take possession and HOA lose : : : : : their back dues if the home does not sell at the auction? : : : : If I'm understanding you correctly, the HOA has a scheduled sale. If there's no third party bidder, the HOA becomes the owner after sale. The first remains in place. That's CA specific, other states have different rules. : : : Yes, you understood correctly and it is CA. : : Two things to also keep in mind: : : 1. HOA auctions often don't happen when the loans are current. It seems to be an owner in dispute with the HOA, so the owner doesn't pay the assessment until forced to by the impending sale. : : 2. Successful third party bidders on an HOA sale can have difficulty obtaining title insurance for an immediate resale. : Item (1) makes sense. Bear in mind the owner is also behind in property taxes. : Why is there a reluctance to provide title insurance? Some Title Insurance companies don't want to insure HOA foreclosed property because often the reason someone is not paying their HOA dues is because of a dispute -- not because they cannot pay. Thus they fear that they will end up in the middle of litigation. Follow Ups: Post a Followup: Name : E-Mail : Subject : Comments: : : : : : : Owner is current on the mortgage but defaulted on HOA and taxes. HOA has filed NOD and a trustee auction has been scheduled. Will the lender take possession and HOA lose : : : : : : their back dues if the home does not sell at the auction? : : : : : If I'm understanding you correctly, the HOA has a scheduled sale. If there's no third party bidder, the HOA becomes the owner after sale. The first remains in place. That's CA specific, other states have different rules. : : : : Yes, you understood correctly and it is CA. : : : Two things to also keep in mind: : : : 1. HOA auctions often don't happen when the loans are current. It seems to be an owner in dispute with the HOA, so the owner doesn't pay the assessment until forced to by the impending sale. : : : 2. Successful third party bidders on an HOA sale can have difficulty obtaining title insurance for an immediate resale. : : Item (1) makes sense. Bear in mind the owner is also behind in property taxes. : : Why is there a reluctance to provide title insurance? : Some Title Insurance companies don't want to insure HOA foreclosed property because often the reason someone is not paying their HOA dues is because of a dispute -- not because they cannot pay. Thus they fear that they will end up in the middle of litigation. Optional Link URL: Link Title: Optional Image URL: [ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] WWWAdmin 2.0a © 1997 Matt Wright and DBasics Software Company, All Rights Reserved

Information provided by this website is for informational purposes only and is not a substitute for professional advice. Please consult your investment advisor and/or attorney before entering into any transaction. Read our privacy policy.

Copyright © 1997-2003, InnoVest Resource Management
http://www.foreclosureforum.com

InnoVest Resource Management, 4569-A Mission Gorge Place, San Diego CA 92120-4112
(619) 283-5444, Fax (619) 283-5455