ChrisW4 (Georgia)
Posts: 16
Posts: 16
Posted:
'm in Georgia. Our HOA has a lien against a seriously delinquent unit in our complex - the owner hasn't paid HOA dues in almost three years and now owes over $10K including penalties and interest. The owner (absentee, BTW) also has the unit for sale as a pre-foreclosure, but it listing for far above what anyone can reasonably assess fair value. As such we expect this unit to be foreclosed on eventually. The current listed mortgage is very close to what the last unit sold for here, so I doubt there will be any equity in such a case after the bank reclaims their share.
We've been operating on the understanding that if the unit does get foreclosed on, our lien becomes unenforceable. However, a TV house-hunting show mentioned that buying a foreclosure can expose one to "unexpected issues, including prior liens". While I'm not dumb enough to take the word of a television show as gospel, it has made me wonder if our assumptions have been incorrect.
So the question is, if the unit is foreclosed on, does our lien, in fact, get wiped out? If not, would it be the bank's responsibility to pay the lien, or whoever the bank eventually sells the unit to? And if this is the case, would it possibly be worthwhile, given the amount owed, to start foreclosure proceedings ourselves?
We've been operating on the understanding that if the unit does get foreclosed on, our lien becomes unenforceable. However, a TV house-hunting show mentioned that buying a foreclosure can expose one to "unexpected issues, including prior liens". While I'm not dumb enough to take the word of a television show as gospel, it has made me wonder if our assumptions have been incorrect.
So the question is, if the unit is foreclosed on, does our lien, in fact, get wiped out? If not, would it be the bank's responsibility to pay the lien, or whoever the bank eventually sells the unit to? And if this is the case, would it possibly be worthwhile, given the amount owed, to start foreclosure proceedings ourselves?