HOA Forclosure


#1

In Sept 2010 a bank forclosed on a property. It did not sell at the Trustee sale and reverted back to the bank (REO). Soon after that the Assignment of Deed and Trustee’s Deed was recorded in favor of the bank. Now over a year later the Home Owners Association has filed a NOD and NTS against the bank for failing to pay the HOA dues. The sale is coming up soon and my question is if I or another buyer wins the Auction on the court house steps, do we own the house? Has anyone ever had this kind of experience? I know in the case of this HOA, they now have three Conds they own because no one bid at the auction.


#2

Hi Katherine,
If what you have said is true then you could purchase the HOA foreclosure and own the house. In this specific situation there would not be any senior Deed of Trust. Keep in mind that the owner (bank in this case) has a 90 day redemption period following a HOA foreclosure.