Questions about final step of foreclosure proceeding

It appears that next week we will have to make our decision on the final step regarding a home that we have been pursuing foreclosure on. I have never experienced the Board going this far (usually they pay up before the owner gets to this point). As I stated in another thread, we don't know anything about the homeowner. We don't know if they live in the community. We know they haven't mowed the front yard lawn in about 6 months.

The options in front of us are:

1) Sheriff's Sale. It appears to me that the owner has a one year redemption period. It does not appear that we get any money from a Sheriff's sale, but please correct me if I am mistaken.

2) Eviction after Sheriff's Sale. If the association buys the home, we can evict the occupants and rent it out for as long as we retain the right to possess. I'm not thinking the association wants to be a landlord?

3) Garnishment: The Association can attempt to garnish bank accounts or wages. For this homeowner, I doubt they have any garnishable bank accounts or wages.

4) Receivership: We can request that the Court appoint a receiver to take possession of the home and rent it out on the Association's behalf. The association would be paid sufficent amounts to pay down the account. This is not an option if the owner lives there, and we do not know if the owner lives there or not.

5) Judgment lien. No clue what this is.

I'm not exactly sure, from the brief description above, how the association gets paid from any of these options.

Is there anyone here that is familiar with these options and can explain what avenues are probably the best to take?

The payback you get in a foreclosure is not what you may think it is. The starting bid is the amount owed by unpaid dues, interest, late fees, and legal fees it cost to file the foreclosure. 1st bid goes to the HOA for $1 over this bid. Which would be stupid for the HOA paying on its own debt? Double the hole it is already in.

The HOA does NOT want this house. They still have to pay HOA dues on it. Plus pick up the bid and any leftover mortgages. Can your HOA afford the repairs, house payments, utility, taxes, and any homeowner expenses? This is not short term. It could be a year to clear

Make sure you have a lawyer. This needs one.

Have you done an internet search to find out?

1) Sheriff's Sale. It appears to me that the owner has a one year redemption period. It does not appear that we get any money from a Sheriff's sale, but please correct me if I am mistaken.

The house will be auctioned at the courthouse step with the first bid being the HOA's bid for the amount it's owed. Your HOA will not receive cash and will receive the house. THEN, the mortgage company will demand you refinance the property and call the current mortgage due....and the HOA will then ultimately lose the house to the bank, which would need to pay HOA dues.

2) Eviction after Sheriff's Sale. If the association buys the home, we can evict the occupants and rent it out for as long as we retain the right to possess. I'm not thinking the association wants to be a landlord?

The owners will absolutely vacate a house they lose to the HOA and the sheriff will need to oversee the HOA's security in getting new locks installed immediately or as soon as legally allowed. YOUR HOA SHOULD NOT FORECLOSE A HOUSE IN ORDER TO RENT IT OUT. NEVER.

3) Garnishment: The Association can attempt to garnish bank accounts or wages. For this homeowner, I doubt they have any garnishable bank accounts or wages.

FORGET THIS ONE AS WELL. IF YOU GET THE HOUSE IN A FORECLOSURE, YOUR LIEN WILL BE EXTINGUISHED.

4) Receivership: We can request that the Court appoint a receiver to take possession of the home and rent it out on the Association's behalf. The association would be paid sufficent amounts to pay down the account. This is not an option if the owner lives there, and we do not know if the owner lives there or not.

NO ON "RECEIVERS" AND RENTING THE HOME.

5) Judgment lien. No clue what this is.

YOU CAN "CHASE" THIS OWNER FOR PAYMENT LIKE A DEBT COLLECTOR....WHY?

There is no upside to an HOA's foreclosure for non-payment except to move as quickly to get the property under an owner/bank that will pay HOA dues.

Whatever - just have the session, discuss the pros and cons, then make a decision. Please pay attention to what happens next - that'll give you some ideas on how to approach this from tge start, although I hope you never have to do this again.

Remember there's a chance you might not get ANY money back from this owner, so your ultimate goal should getting that owner out and replaced with someone who will cut the grass and pay assessments.

Typically you can't do garnishment because the HOA can't have owner's social security numbers. It's not impossible but it's not as easy if had access to that information.

I don't know if the proper notification has been sent to these owners prior. There was a lien placed on it correct? So that process of certified mail etc... Notice sent just to the HOA property or an off-site address? Going to the Tax Assessor's office with the Lot # should allow you to have an idea of whom owns the home. Death and Taxes are assured.

Equity smeckity... Means nothing. What means is how much is owed on the mortgage or mortgages... These people may have to cough up the $350K plus the foreclosure costs. Which at this point the money your HOA MAY get back is just the money to fill the hole. It's not like your getting any of the "equity" or value of the home. It's just your expenses and money they owe.

Again the HOA should NOT own this home!!! Do NOT entertain this idea. What need to do is concentrate on finding potential buyers to show up to the Sherriff's sale. The more potential buyers the more likely you will get the money.

I would find out what the time line of right to redemption is in your state. It varies. So until that period is over with, the house will stay as is for the most part.