Bank controlled but not owned RE

NpS (Pennsylvania)
Posts: 4,216

Posted:

Does anyone have an issue with a bank controlled property that never reaches foreclosure sale?

We have a house that has been vacant for 5 years. It was bought in the no money down days before the meltdown. The bank filed for foreclosure twice but pulled back both times. In the last year, the first mortgage has changed hands twice. The first time the change wasn't recorded. The second time it was.

Does anyone have a similar experience? What did your HOA do?

Sikubali jukumu. Read all posts at your own risk.

PitA1
Posts: 222

Posted:

If the assessments are paid and the home is otherwise in compliance ~ MYOB

If not, and the situation is 'out of control' the HOA brings an action to foreclose.

Y'all will not get paid, but, the 'bleeding' will stop as either:

the bank may now be forced to foreclose and y'all will then have an owner who can be made to pay

or

y'all will own and may sell to a new owner

NpS (Pennsylvania)
Posts: 4,216

Posted:

If dues were being paid and the property was being maintained, I wouldn't have posted.

Property is financially under water. If HOA forecloses, that won't wipe out first mortgage. Don't think that anyone is going to even bid on the property if it comes loaded with debt.

Sikubali jukumu. Read all posts at your own risk.

AnnH5 (Florida)
Posts: 304

Posted:

I don't know how things are in PA. Down here in Hades, it's like this:

If HOA fees are not paid, HOA can place lien, foreclose on lien, either sell title at auction or take title, and wait it out until bank finally forecloses. If title is sold at auction, typically it is to someone who will rent out the property until the bank forecloses. Some HOAs like to take the title and rent it out themselves until the bank forecloses. Overall, I have observed those tactics becoming nothing more than a big mistake.

HOWEVER, if the owner declares bankruptcy, everything comes to a grinding halt.

If HOA fees are being paid but the property is not maintained, some HOAs will do things like mowing the lawn, removal of rubbish, etc. Some HOAs just put up with the property until a foreclosure finally comes through. We have a few foreclosed homes where the banks have hired someone to come do a hacked up mowing job on a semi-regular basis. They are homes that are bank-owned, are vacant, and are not on the market.

SteveM9 (Massachusetts)
Posts: 3,699

Posted:

Sounds like the owner gave it back. Check the deeds. Same result.

If its in decent shape and it was my HOA, I would foreclose on it and rent it until the bank foreclosed on the HOA. You can pay off all the back dues pretty fast. If its in bad shape, just wait till the banks sell it. Some houses in my state are taking 6 years

RogerB (Colorado)
Posts: 5,067

Posted:

NpS,
What you described is difficult to correct when there is not sufficient equity in the property to justify a judicial foreclosure. We file a lien on the property and consider any offers related to a short sale.

DavidW5 (North Carolina)
Posts: 565

Posted:

We have a home that was abandoned 3 years ago. It has a hole in the roof. The owner moved out of state and declared bankruptcy. The assessments have gone unpaid but the lender apparently has been paying the property taxes. We found out that the lender has not yet even entered an appearance in the bankruptcy proceedings.

I found the contact information for the bank executive responsible for their mortgage business in their SEC filings. I sent him a letter with the history of the property and pictures and asked him to poke his organization into action. I received a letter back stating that they would take action but that due to privacy rules they could not provide any other information. They did provide the forms to me that the owner would have to sign to allow me to receive information. We are having our attorney contact the owner's attorney to offer that we would not pursue the post bankruptcy delinquent assessments if he grants us access to the information. I am awaiting a response.

PitA1
Posts: 222

Posted:

part of HOA membership is joint ownership of 'common elements' with deadbeats

call code enforcement for property issues under the international property management code to which 'most' authorities having jurisdiction conform

CAVEAT EMPTOR

NpS (Pennsylvania)
Posts: 4,216

Posted:

Quote:

Posted By AnnH5 on 07/08/2014 7:05 AM
I don't know how things are in PA. Down here in Hades, it's like this:

If title is sold at auction, typically it is to someone who will rent out the property until the bank forecloses. Some HOAs like to take the title and rent it out themselves until the bank forecloses. Overall, I have observed those tactics becoming nothing more than a big mistake.

HOWEVER, if the owner declares bankruptcy, everything comes to a grinding halt.

If HOA fees are being paid but the property is not maintained, some HOAs will do things like mowing the lawn, removal of rubbish, etc. Some HOAs just put up with the property until a foreclosure finally comes through. We have a few foreclosed homes where the banks have hired someone to come do a hacked up mowing job on a semi-regular basis. They are homes that are bank-owned, are vacant, and are not on the market.

We estimate that it would cost at least $70k to make it rentable. Don't think that anyone is going to take that risk if the mortgage balance exceeds the market value.

We maintain the grounds.

Because the foreclosure never went through, the bank can claim that the RE is not bank owned. It's still titled in the folks who abandoned the property.

There is a maintenance group that gets sent from time to time. They take pictures, winterize, and write reports, but that's about it.

There is a termite infestation that is infringing on the adjacent townhouse owner's home. We will probably have to eat the cost of termite remediation.

Sikubali jukumu. Read all posts at your own risk.

NpS (Pennsylvania)
Posts: 4,216

Posted:

Quote:

Posted By RogerB on 07/08/2014 8:01 AM
NpS,
What you described is difficult to correct when there is not sufficient equity in the property to justify a judicial foreclosure. We file a lien on the property and consider any offers related to a short sale.

We have reached out to the bank and to the titleholders. The bank won't talk to us because a short sale must be initiated by the title holder. The title holders won't sign anything because they would just as soon wait it out.

The problem is that neither the bank nor the titleholders have any incentive to take action and we're getting stuck with the carrying costs.

Sikubali jukumu. Read all posts at your own risk.

NpS (Pennsylvania)
Posts: 4,216

Posted:

Quote:

Posted By DavidW5 on 07/08/2014 8:24 AM
We have a home that was abandoned 3 years ago. It has a hole in the roof. The owner moved out of state and declared bankruptcy. The assessments have gone unpaid but the lender apparently has been paying the property taxes. We found out that the lender has not yet even entered an appearance in the bankruptcy proceedings.

I found the contact information for the bank executive responsible for their mortgage business in their SEC filings. I sent him a letter with the history of the property and pictures and asked him to poke his organization into action. I received a letter back stating that they would take action but that due to privacy rules they could not provide any other information. They did provide the forms to me that the owner would have to sign to allow me to receive information. We are having our attorney contact the owner's attorney to offer that we would not pursue the post bankruptcy delinquent assessments if he grants us access to the information. I am awaiting a response.

We have 2 titleholders. 1 filed for bankruptcy. The other didn't. Neither one seems to care about delinquencies. They'd rather wait it out.

Sikubali jukumu. Read all posts at your own risk.

NpS (Pennsylvania)
Posts: 4,216

Posted:

Quote:

Posted By PitA1 on 07/08/2014 9:53 AM
part of HOA membership is joint ownership of 'common elements' with deadbeats

call code enforcement for property issues under the international property management code to which 'most' authorities having jurisdiction conform

CAVEAT EMPTOR

Zoning authorities won't deal with it yet because it isn't dilapidated enough.
Health authorities (there is significant mold) won't deal with it because they're fully focused on properties that have people living inside.

Once again Pita, the simplicity of your solutions never seem to deal with real world realities.

Sikubali jukumu. Read all posts at your own risk.

PitA1
Posts: 222

Posted:

Zoning authorities won't deal with it yet because it isn't dilapidated enough.
Health authorities (there is significant mold) won't deal with it because they're fully focused on properties that have people living inside.

Once again Pita, the simplicity of your solutions never seem to deal with real world realities.

zoning won't deal - so the violations are NOT all that severe as to pose actual hazards

health authority - ditto

life can be really simple IF YOU LET IT

stop obsessing about your neighbors life style or lack thereof

If a member objects to the 'covenant violation' let the member take action in a court of law.

If the BOD objects - same advice.

If assessments are not paid record the lien give the matter to a collection agency - they MAY get you something.

In all the above all the BOD needs do is 'lift a pinky' and go back to the pool.

Or the BOD may institute foreclosure itself (with legal counsel).

(and wait for the bank's foreclosure)

It actually is pretty simple:

DO, OR DO NOT; THERE IS NO TRY.

PitA1
Posts: 222

Posted:

OP;

just reread your original post and gave it more thought

the HOA needs to initiate foreclosure proceeding in order to force the bank's hand

it will not get you $$$

but

it will stop the bleeding

time for your corporate attorney to earn his keep

SIMPLE - call the attorney - done

NpS (Pennsylvania)
Posts: 4,216

Posted:

Quote:

Posted By PitA1 on 07/08/2014 12:38 PM
OP;

just reread your original post and gave it more thought

the HOA needs to initiate foreclosure proceeding in order to force the bank's hand

* wrong. how will our foreclosure force the bank's hand?

it will not get you $$$

* and as I said above, we don't think anyone is going to bid on a property loaded with debt. so we will go through the expense of foreclosure, and no one will bid on it. What does that do for us other than kill time and waste money?

but

it will stop the bleeding

* no it won't. if no one bids, there is no title transfer, and we don't get paid assessments. So all for nothing.

time for your corporate attorney to earn his keep

SIMPLE - call the attorney - done

Sikubali jukumu. Read all posts at your own risk.

PitA1
Posts: 222

Posted:

YOUR HOA WILL BID $100 on your foreclosure which will force the bank

should the bank NOT foreclose then YOUR HOA will hold title

you then resell or rent it out

if the bank DOES foreclose then THEY pay dues from then on and have 'deep pockets'

I am not an attorney, but even I know all this.

Time for y'all to stop 'cheaping out' and get your attorney involved.

NpS (Pennsylvania)
Posts: 4,216

Posted:

You are totally missing the point Pita.

The bank is in first position.

If we foreclose, the first position debt to the bank doesn't go away. It's still in first place.

So if we bid $100 and obtain title, then we have title subject to the bank's first position mortgage.

Once we have title, we can't rent it because it would cost over $70k just to make it liveable. And we're not putting $70k of HOA funds into a property that the bank still controls via the debt.

And once we have title, we become potentially liable for the deteriorated condition of the property.

So I don't see us better off by any stretch.

What surprises me is that no one in this forum has run into a situation where the bank is intentionally delaying/avoiding foreclosure in order to avoid the liability of REO property and to avoid paying assessments. There must be some very tame banks where you all come from.

Sikubali jukumu. Read all posts at your own risk.

PitA1
Posts: 222

Posted:

YOU are missing the point.

Once you have title you may offer the 'unit' for sale for, let us say, $100.

In order to protect itself the bank will foreclose.

If not, YOU are still rid of the 'unit'.

Either way, the bleeding ends.

PitA1
Posts: 222

Posted:

ps.

been there, done that

multiple times

SheliaH (Indiana)
Posts: 6,964

Posted:

Quote:

Posted By NpS on 07/08/2014 1:38 PM
You are totally missing the point Pita.

The bank is in first position.

If we foreclose, the first position debt to the bank doesn't go away. It's still in first place.

So if we bid $100 and obtain title, then we have title subject to the bank's first position mortgage.

Once we have title, we can't rent it because it would cost over $70k just to make it liveable. And we're not putting $70k of HOA funds into a property that the bank still controls via the debt.

And once we have title, we become potentially liable for the deteriorated condition of the property.

So I don't see us better off by any stretch.

What surprises me is that no one in this forum has run into a situation where the bank is intentionally delaying/avoiding foreclosure in order to avoid the liability of REO property and to avoid paying assessments. There must be some very tame banks where you all come from.

I don't know if you've used the search function on this website, but this situation has been discussed several times (I know I've personally brought it up in two or three threads).

Unfortunately, this situation is going on all over the country and it's really putting HOAs in a bind, but there's not a lot you can do, other than place a lien on the home and hope the bank gets around to completing the foreclosure and perhaps you'll get some money. More often than not, you won't get anything because, as you've seen, the bank's lien is superior to yours and any money this house brings in, if any, will go to them. The only lien superior to that is a tax lien. I don't know how it works in your area, but in my experience as a former Board treasurer, delinquent homeowners quit paying everyone and if the bank didn't move, the city or county would slap a lien on it and that must be paid before the house changes hands - if the bank doesn't pay it, it loses its interest and once again, the HOA will probably have to write off the money.

The banks drag their feet on completing foreclosures is because they become responsible for the home's expenses (including assessments) as soon as the foreclosure is complete. They already have a bad loan and don't want to spend any more money - who cares if the HOA isn't getting paid - even if those same assessments help take care of the snow removal, lawn care and other outdoor maintenance that helps the outside of the house looks halfway decent so property values won't complete go in the toilet??? This is also why they keep the house in the owner's name as long as possible until it's sold, because technically, the owner remains responsible (even if he/she/they've moved out). You could still go after the homeowner, but they may not have any money anyway (you can't squeeze blood out of a turnip). If they declared bankruptcy and the assessments got discharged, you're SOL for the money owed as of the bankruptcy filing date.

Your association could consider fixing up the house and rent it out to apply that money against the delinquent amount, but, as others have said, that can add more expenses to the association that you don't have and don't want to spend. I've also heard of HOAs who've done a reverse foreclosure - after doing their own foreclosure, they turn around and sue the bank to compel them to take the house and begin paying assessments, but it may not help with back fees.

Our association kicked around the idea of suing the bank for quiet title - basically asking the court to strip the mortgage company of its interests because they've done nothing to sell the house and aren't paying fees. It's not a guarantee of anything and can get very expensive, but if it's something your association may want to consider, talk to your attorney about the pros and cons.

So what do you do? If this place needs $70K in repairs, I wouldn't pay it, but if you have CCRs that regulate that sort of thing, I suppose you could go after the bank for failing to maintain it, but because the house is in limbo, I don't know how successful you'd be. Whatever you do, get a lien and then watch and wait.

One final thought - I don't know if they're still doing it, but at one time Habitat for Humanity was able to purchase these types of house dirt cheap and renovated them to sell to their clients. In some cases, I believe some banks even donated the houses outright - you might consider talking to the local chapter in your area or similar organizations and facilitate some sort of deal with the bank - maybe they'll go ahead and donate the house (along with $70K) to fix the place up and get it into the hands of a more responsible homeowner. Good luck!

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

AnnH5 (Florida)
Posts: 304

Posted:

OP is correct, the bank is always going to have the first right to the property. Anyone who buys a title to satisfy a lien is only going to hold onto the property until the bank takes it via foreclosure on the mortgage.

In OP's case, it sounds like the property is dilapidated and the bank really isn't all that interested in repossessing the property (if it needs $70K in repairs and has mold and termites- what a hot mess it must be).

I agree that perhaps the best recourse is to confer with the Association's attorney and find out what the options are. I also wonder if there is any recourse with any local government (city or county) for assistance?

JohnC46 (South Carolina)
Posts: 14,265

Posted:

Quote:

Posted By SheliaH on 07/08/2014 2:48 PM

Posted By NpS on 07/08/2014 1:38 PM
You are totally missing the point Pita.

The bank is in first position.

If we foreclose, the first position debt to the bank doesn't go away. It's still in first place.

So if we bid $100 and obtain title, then we have title subject to the bank's first position mortgage.

Once we have title, we can't rent it because it would cost over $70k just to make it liveable. And we're not putting $70k of HOA funds into a property that the bank still controls via the debt.

And once we have title, we become potentially liable for the deteriorated condition of the property.

So I don't see us better off by any stretch.

What surprises me is that no one in this forum has run into a situation where the bank is intentionally delaying/avoiding foreclosure in order to avoid the liability of REO property and to avoid paying assessments. There must be some very tame banks where you all come from.

I don't know if you've used the search function on this website, but this situation has been discussed several times (I know I've personally brought it up in two or three threads).

Unfortunately, this situation is going on all over the country and it's really putting HOAs in a bind, but there's not a lot you can do, other than place a lien on the home and hope the bank gets around to completing the foreclosure and perhaps you'll get some money. More often than not, you won't get anything because, as you've seen, the bank's lien is superior to yours and any money this house brings in, if any, will go to them. The only lien superior to that is a tax lien. I don't know how it works in your area, but in my experience as a former Board treasurer, delinquent homeowners quit paying everyone and if the bank didn't move, the city or county would slap a lien on it and that must be paid before the house changes hands - if the bank doesn't pay it, it loses its interest and once again, the HOA will probably have to write off the money.

The banks drag their feet on completing foreclosures is because they become responsible for the home's expenses (including assessments) as soon as the foreclosure is complete. They already have a bad loan and don't want to spend any more money - who cares if the HOA isn't getting paid - even if those same assessments help take care of the snow removal, lawn care and other outdoor maintenance that helps the outside of the house looks halfway decent so property values won't complete go in the toilet??? This is also why they keep the house in the owner's name as long as possible until it's sold, because technically, the owner remains responsible (even if he/she/they've moved out). You could still go after the homeowner, but they may not have any money anyway (you can't squeeze blood out of a turnip). If they declared bankruptcy and the assessments got discharged, you're SOL for the money owed as of the bankruptcy filing date.

Your association could consider fixing up the house and rent it out to apply that money against the delinquent amount, but, as others have said, that can add more expenses to the association that you don't have and don't want to spend. I've also heard of HOAs who've done a reverse foreclosure - after doing their own foreclosure, they turn around and sue the bank to compel them to take the house and begin paying assessments, but it may not help with back fees.

Our association kicked around the idea of suing the bank for quiet title - basically asking the court to strip the mortgage company of its interests because they've done nothing to sell the house and aren't paying fees. It's not a guarantee of anything and can get very expensive, but if it's something your association may want to consider, talk to your attorney about the pros and cons.

So what do you do? If this place needs $70K in repairs, I wouldn't pay it, but if you have CCRs that regulate that sort of thing, I suppose you could go after the bank for failing to maintain it, but because the house is in limbo, I don't know how successful you'd be. Whatever you do, get a lien and then watch and wait.

One final thought - I don't know if they're still doing it, but at one time Habitat for Humanity was able to purchase these types of house dirt cheap and renovated them to sell to their clients. In some cases, I believe some banks even donated the houses outright - you might consider talking to the local chapter in your area or similar organizations and facilitate some sort of deal with the bank - maybe they'll go ahead and donate the house (along with $70K) to fix the place up and get it into the hands of a more responsible homeowner. Good luck!

Overall, Shelia's advice/information is correct and wise. Yes there could be some twists depending on where and the situation, but her advice is sound.

NpS (Pennsylvania)
Posts: 4,216

Posted:

Thanks all.

Re PA law:

By statute, an HOA gets a super-lien in a foreclosure sale. After taxes, the HOA is next in line but only for 6 months of assessments, and then the bank is next. The bank doesn't care because its max liability is 6 months of fees now or later. No incentive for the bank to do anything at all.

Re Sheila's answers:

We are familiar with the reverse mortgage concept but have heard that it has had mixed success in different state court systems. Does anyone have direct experience?

Can you share your thinking on why you finally decided not to pursue quieting title against the bank?

Will talk to the Board about reaching out to Habitat for Humanity.

Again, thanks to you and everyone else who responded.

Sikubali jukumu. Read all posts at your own risk.

MelissaP1 (Alabama)
Posts: 13,836

Posted:

I went through this situation. We did foreclose on a property. The owner refused to pay their dues and a special assessment for over 2 years. They were renting the home out as "rent to own". We foreclosed on the property for around $2,500 debt they owed. The owner had to evict the tenant out. That left the home abandoned and neglected. So by the time our foreclosure went through and it was sold, the home was in bad shape. It ended up becoming a tax HUD foreclosure. Taking over 2 years before being bought again. Someone did buy it and fixed it up for rental use. One of those situations where HOA's are NOT against having renters...

We still had to provide lawncare around the property. It was still part of our 107 home community. We could not afford to own the home nor fix it up if we did. Plus people forget the HOA does have to pay the dues on the property once they own it. In our case, we would have had to make mortgage payments on it as well if we owned it. Plus taxes/insurance expenses. We would have never gotten any money out of it nor renting would bring in income to cover the costs. Considering we would still have to pay for repairs for rental property.

Unfortunately, the truth is leaving the property alone is the best option. One may do things around the outside to keep it mowed or cleaned up. However, entering the home or spending money on it is not recommended. The HOA does NOT own the home and is breaking the law by entering.

We just kept the yard mowed and let our people or whoever asked about the situation informed. Maybe get lucky and find someone to buy the home. People are always looking for flipping houses. Spread the word and find some flippers. Good ones will know the system well enough to know how to buy the homes. Keep in mind they are professionals and will most likely use it as rental property. The home is atleast being lived in.

Former HOA President

NpS (Pennsylvania)
Posts: 4,216

Posted:

Over the years, many flippers have expressed interest in the property. We even thought about flipping it ourselves as an HOA.

We gave our lawyer a simple instruction: Go find a person at the bank who has the authority to strike a deal with us. We will get the necessary signoffs from the titleholders but we can only do that when a deal is firmly in place. We'll find a buyer or buy it ourselves. Our only caveat is that we are not going to put a blind bid out there. We want to cut a deal with a decision maker, not be led through a bunch of corridors to nowhere. Our only questions were "who do we talk to" and "how much will they accept to unload the property"

Our lawyer came back empty handed. Because we're not the HO, bank won't deal with us without the HOs' prior signoff. Sound familiar. But the HOs have already told us that they won't sign anything, not even a release form, until a deal is set. We wind up spinning our wheels on this every time we get a new idea.

In about 2-4 years, things will really start falling apart. Then the zoning authorities will probably condemn the property if it isn't boarded up, but if it is boarded up, it will like crap, not to mention violating every spec that we have.

One of the unfortunate consequences is that some HOs are starting to use that house as an excuse for not keeping their houses up to HOA standards. We know what to answer, but that doesn't make things any easier.

Sikubali jukumu. Read all posts at your own risk.

MelissaP1 (Alabama)
Posts: 13,836

Posted:

The HOA should never ever be in the house flipping business. Several reasons for this. Not to mention if ya did make a profit, you owe taxes on that profit. I tried my hand at house flipping and renting. Bad idea. I am posting from my flipping house now and my rental had to be sold. Funny how renters have rights and can livein the property not paying rent for up to a year in some cases without being able to evict. Plus they are notsubject to the HOA rules unless stipulated in the rental agreement. See how complicated even the small details are? A HOA can barely manage itself...

People often judge this as wrong but technical nothing wrong with it. The HOA if house is NOT being foreclosed on by the bank, can foreclose. The first bid goes to the HOA for 1 dollar more than the amount owed. Which basically if the HOA bought pays back its own hole/debt again. Plus in some cases one has to assume the leftover mortgage. The amount of which could be more or less than house is worth. So the HOA has had to pay bid price, the mortgages assumption, repairs, utility hook up costs, HOA dues, and other costs if to own the home. Plus the right to redemption exist in some states up to a year.

The foreclosure process always STOPS as soon as the owner pays. They can come up to the courthouse steps at the auction and pay up. Keep in mind the auction is PUBLIC. This is where things go blurry for some. Since it is public and published in the paper ANYONE can openly bid on the home. This does include BOARD members! It may be the HOA members or board has an "inside scoop" but who really cares as long as someone buys it fix it up? The bleeding is to stop and healing begin.

That is why I do not get the logic of some to scream "crooked" if a member or board member buys a home that is in foreclosure. It is a smart buy in my opinion. It unloads the house of burden and pays back the HOA. Heck, even our lawyer doing our foreclosure was interested in the property or had friends that were. I got a friend of mine to show up and buy our foreclosure property. She later did not keep the house and it went into Hud foreclosure. However, considering the information is PUBLIC I have no issue with who bids as long as NOT HOA.

Former HOA President

SheliaH (Indiana)
Posts: 6,964

Posted:

Quote:

Posted By NpS on 07/08/2014 6:47 PM
Thanks all.

Re PA law:

By statute, an HOA gets a super-lien in a foreclosure sale. After taxes, the HOA is next in line but only for 6 months of assessments, and then the bank is next. The bank doesn't care because its max liability is 6 months of fees now or later. No incentive for the bank to do anything at all.

Re Sheila's answers:

We are familiar with the reverse mortgage concept but have heard that it has had mixed success in different state court systems. Does anyone have direct experience?

Can you share your thinking on why you finally decided not to pursue quieting title against the bank?

Will talk to the Board about reaching out to Habitat for Humanity.

Again, thanks to you and everyone else who responded.

At the time I left the board, we hadn't given up on the idea, but since we have several liens against several properties and Association foreclosures aren't cheap, we decided to put a moratorium on association foreclosures for six months or so and then see where we were. I had also suggested that we take a look at all the liens we had and see whether a specific bank had more than one house in limbo. That bank would be the one I'd recommend going after because then we could also tell the court "Satan's Bank has X number of houses in our community that have been in limbo for a combined X number of years, and we've lost X amount of money in assessments because no one will pay."

Interestingly enough, the house that started me along this line of thinking has been in limbo for nearly four years (!), but recently our president told me the bank has finally found a buyer and now they want to work something out with the Association. So stayed tuned! If we ever proceed with the quiet title lawsuit and it works, I'll let everyone know. And if your association gets any inspiration from all this and it works, let US know how you did it so we can see if we can adapt it to our communities!

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

JohnC46 (South Carolina)
Posts: 14,265

Posted:

NpS

Please do keep an eye on the place. Would be a shame if some homeless person got in there and had an accident while trying to light a little Sterno 7OZ cooking can and the home suffered fire damage as in maybe enough to condemn it and have tear it down as a safety hazard. Might even be the homeless person you recently saw near the neighborhood begging change. Of course you just got a glimpse and he was so dirty, ragged you could not see anything distinguishing him. Heck, it might have been a her for all you know.

SteveM9 (Massachusetts)
Posts: 3,699

Posted:

Quote:

the bank has finally found a buyer and now they want to work something out with the Association. So stayed tuned! If we ever proceed with the quiet title lawsuit and it works, I'll let everyone know.

In Illinois, since a buyer is only legally responsible for back dues up to 6 months, its likely the bank wants to work a deal for "less than" 6 months. Probably not what you wanted to hear, but that is how it is.

JohnB26 (South Carolina)
Posts: 1,001

Posted:

Quote:

Posted By JohnC46 on 07/10/2014 9:45 AM
NpS

Please do keep an eye on the place. Would be a shame if some homeless person got in there and had an accident while trying to light a little Sterno 7OZ cooking can and the home suffered fire damage as in maybe enough to condemn it and have tear it down as a safety hazard. Might even be the homeless person you recently saw near the neighborhood begging change. Of course you just got a glimpse and he was so dirty, ragged you could not see anything distinguishing him. Heck, it might have been a her for all you know.

I am surprised at this lapse of judgment. ? Ever seen a severe burn victim ? Injured firefighter ? Use Mr. Smith and Mr. Wesson if you must, but don't even think about fire.

OR

Record the lien and foreclose.

SteveM9 (Massachusetts)
Posts: 3,699

Posted:

Quote:

Record the lien and foreclose

Its only worth foreclosing if you can rent it out. If it needs 70k in work, there is no reason to foreclose. The HOa would have to eat the lawyer fees.

but yes, spend $25 and record a lien to get at least 6 months of back dues.

BruceS3 (Florida)
Posts: 33

Posted:

I disagree. We have had several instances where the lien was foreclosed on homes in HOAs here in Florida and the bank could not do anything. The only time they could do something was if the home was already in the foreclosure process. I also think they now require the mortgage holder to take care of the property until foreclosure is completed (exterior).

SteveM9 (Massachusetts)
Posts: 3,699

Posted:

Florida is not Pennsylvania. The big difference? Florida is one of the most proactive states when if comes to updating HOA laws.