Does anyone know what happens when an HOA files a lien on a unit, then the unit is foreclosed? Does the lien disappear and the HOA have to write-off the loss?
What about other types of liens, like property taxes and mechanics liens?
HOA leins are junior to the primary. If the lender takes it back they try to sell it for the market value. If it sells at some price, and they deduct their costs and the primary is covered, then the junior leins get money in the order of their priority, for example a 20% secondary loan gets precedence over an unpaid utility bill which gets precedence over a HOA … so HOA’s never see any money in the default cases.
However the HOA can block the sale of a unit, because a primary loan originator wants it free and clear … so they check and make sure its all caught up. They can also block refi and inheritance processes.
I know cos I am the president of one. They are all worthless and delinquents generally make them all cost more and more for the homeowners. I can only imagine in a subdivision filled with rampant speculative buyers.
I think I’d like to see all of the real estate guru’s including the wannabe’s lined up and run over by a train just for that. Whose dumb Idea was it to treat your house like it was the freaking stock market. Outrageous transaction costs, Illiquid product, insane transaction time and people cant buy “puts” like with options … and its a speculation tool??? Stupid.
Cool.
Cow_tipping.
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