Sheriff Sale

Started by SharonB6 • 6 replies • 2227 views

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SharonB6 (Pennsylvania)
Posts: 70

Posted:

So I found out that there is a Sheriff Sale in my neighborhood soon. Isn't that craptastic. Anyway.. Do you know if there is anything an HOA needs to do regarding this? Supply paperwork or something like that? Is there anyway that we can ensure we get back dues?

KarenT (Washington)
Posts: 250

Posted:

Loved the word "craptastic"!

Are you sure it is a Sheriff's Sale and not a foreclosure? If you know this is going on doesn't the document state who initiated it? I would contact that individual/company/attorney.

BrianB (California)
Posts: 2,820

Posted:

People gripe cause houses aren't selling, and then when they get sold, people gripe.

You can't make people in HOA's happy.

AS for what the HOA should do, all the information should be public record, they should get with the mortgage holder, and try to communicate back dues, fees, etc.. However, that effort may well be futile, and far too little, far too late. I would advise the HOAto make sure the auctioneer had the highlights of the HOA rules, info about the HOA, etc., so that it can be mentioned during the auction. Never hurts to remind speculator/buyers about what they are buying into.

DennisT (Ohio)
Posts: 109

Posted:

Don't get too excited. There's a fair chance that the winning bidder will be ... the original mortgage holder. Over the years we went through a handful of sales and in all the cases but one the bank wound up buying the property back. They then rehabbed them and put them on the market 6-8 months later. The bad news is the banks didn't pay the monthly assessments. The good news is neither did the person they foreclosed on and the bank wasn't using any of the facilities or utilities. The even better news is that when the bank finally sold the property they rolled all the past due assessments plus all late fees into the purchase price since we slapped a lien on it like with any other property owner. So you won't get your assessments right away but you stand a pretty good chance of getting paid some day.

I wouldn't waste any time trying to give the auctioneer any information. It is of no use to them. Sheriff's sales are "as is" so the auctioneer has no interest in anything that would slow the process down. The property is but one of probably three dozen he must move in an hour or less. I've been to sheriff's sales and they go kind of like this "Next up is parcel number XX-XXX-XX-XXX, appraised at 101, minimum 75-8, do I have minimum? I do, any higher? No, once, twice, and sold to number 43. Next up ..."

It's up to potential buyers to do whatever research is necessary prior to coming to the auction. To that end I would make sure you had some information available in case prospective bidders did call and do their homework. Otherwise just sit back and check the sheriff's site to see who the new owner is. Our sheriff usually updated the sales pages the afternoon of the auction to show what sold, to whom, and for how much.

SheliaH (Indiana)
Posts: 6,964

Posted:

Generally, we put a lien on the property - nowadays, we try to do this when the homeowner is first turned over to the attorney. Ideally, we would get our money when the house sold, but unfortunately, that doesn't work because the purchase price is usually just enough to make the mortgage company and since the HOA is second in line, we're SOL. That's why we're also going after a personal judgement against the owner - if a sherrif's sale doesn't do the trick, the judgment might muddy up his/her credit for the next 10 years.

If it is not right do not do it; if it is not true do not say it. Marcus Aurelius

SusanW1 (Michigan)
Posts: 5,202

Posted:

Sharon - where has your board been for the last 6 - 9 months or more?

That's how long it's taking before there's a sheriff "sale" to happen around here . . .

Does your board have a procedure for collecting delinquent dues?

SharonB6 (Pennsylvania)
Posts: 70

Posted:

Well she is only two months behind and we really don't start getting serious about going after late dues until we hit 3 months. However, I am sure that with the sheriff sale that more months will be added. The cost of a lien at this point doesn't justify the amount of money we might get.

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