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California Foreclosure question

Friday, January 23, 2004 @ 03:29 AM EST

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Contributed by: Chet Mazur

Chet Mazur Properties

Read more archived articles about Foreclosures

I have a question about foreclosing on a 2nd when there is a 1st in place.

1. Default filed on HOA Lien (2nd) for $5000
2. TS sale held, no sale, REO to beneficiary (HOA)
3. Owner of record is now HOA (????)
4. Default filed on 1st TD
5. TS sale held, no sale, REO to beneficiary of 1st

Is the Trustee deed issued in step 5, subject to the $5000 owed to the HOA.

In other words Does the HOA get it's 5000 (plus interest?) out of the proceeds of the TS on the 1st or does a "secured lien" for 5K still exist?

Thanks


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/> thanks /> is have lien exist? issued there held, /> 1. still it's sale foreclosing 5000 /> 4. "secured /> 2. /> 3. filed does $5000 sale, subject when owner step other lien" record beneficiary words deed hoa. foreclosure (hoa) trustee default california /> 5. (2nd) place. (plus interest?) about question /> in owed proceeds

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Votes: 1

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Re: California Foreclosure question (Score: 1)
by Lufos on Saturday, January 24, 2004 @ 06:43 PM EST

I must confess my ignorance, I do not have a clue what is meant by HOA. It is not listed in the accepted list of shortcut words. Could you be so kind as to enlighten me. This just might start a whole new Age of Enlightenment

Lucius.and of course Voltaire we await.

Lets see if I can puzzle it out.

A Trustees sale was held on the second and that sale generated no overbids and the property was struck off to the Beneficiary. The Trustee then cut a Trustees Deed on Sale and the Beneficiary then went into title subject of course to the lst TD.

Then a Default filed on the lst and once again no overbid at the Trustees Sale and the property was then struck off to this Beneficiary. The Trustee then cut a Trustees Deed on Sale and the new Beneficiary is confirmed in title.

Of course the Second is now eliminated from title as is the (HOA???). There was no overage bid at this sale as the property was struck off to the Beneficiary of the lst TD.

Any overage bids on this sale would have course gone to the prior owner who was of course the (HOA???)

Now thats the procedure. Pretty Straight forward. The (HOA) should have serviced the first trust deed and not allowed a foreclosure if the property was worth it. I have a feeling that there was little if any value in the property.

Ah California, Maybe the Donner Party were lucky and did not know it. Wonder what sauce they used.

Lucius[ No Comments Allowed for Anonymous, please register ]

Re: California Foreclosure question (Score: 1)
by wpruett on Sunday, January 25, 2004 @ 10:16 AM EST

HOA=Home Owners Association. Almost every subdivision in Florida has one.[ No Comments Allowed for Anonymous, please register ]

Re: California Foreclosure question (Score: 1)
by JohnMerchant on Sunday, January 25, 2004 @ 03:38 PM EST

Home Owners *****'n gets trustee's title subject to the 1st lien and its note, which now the HOA has to pay.[ No Comments Allowed for Anonymous, please register ]

Re: California Foreclosure question (Score: 1)
by sammyvegas on Tuesday, January 27, 2004 @ 10:18 PM EST

Generally the HOA will wait until one of the big kahunas forecloses such as a 1st mtg or 2nd mtg if there is equity there. Then a bidder other than the lender buys the property. Once the property is in stronger hands the HOA files a lien on the property or makes threats to the new owner of record.

In this case, the HOA may have tried to force the banks hand thinking that they would advance the fees to the HOA and then foreclose. Since there was nothing there, there were no bidders at the auction. Most HOA's don't have the surplus cash to bring the 1st current and/or make mtg for an extend period of time.
A [ No Comments Allowed for Anonymous, please register ]

Re: California Foreclosure question (Score: 1)
by omega1 on Wednesday, January 28, 2004 @ 12:09 PM EST

This sound like a typical luck of incompetence on the part of HOA. Managed by a boar of directors (who are often volunteers craving contractor's kickback), it doesn't surprise me that they manage to get zilch after all the trouble. But that's the fact. What's the question? [ No Comments Allowed for Anonymous, please register ]

Re: California Foreclosure question by cjmazur on Wednesday, January 28, 2004 @ 05:21 PM EST

Re: California Foreclosure question by omega1 on Wednesday, January 28, 2004 @ 06:00 PM EST

Re: California Foreclosure question (Score: 1)
by RonaldStarr on Thursday, January 29, 2004 @ 07:49 AM EST

cjmazur----------------

That is, in my view, a legal question, which suggests that you either consult an attorney or hit the law books to find an answer.

I am not an attorney. I can only give my opinion.

These days the homeowners association liens are probably all subordinate to the lenders' liens. So, the HOA is completely out of luck, in my opinion. They should have sold the property when they owned it and gotten a high enough price to pay them their dues plus some profit for the effort.

If there was not enough equity in the property to do that, they should not have even bothered to foreclose, I feel.

So, why does this question come up? What situation are you looking at?

Good Investing********Ron Starr*****************[ No Comments Allowed for Anonymous, please register ]

Re: California Foreclosure question by cjmazur on Thursday, January 29, 2004 @ 01:09 PM EST

Re: California Foreclosure question (Score: 1)
by omega1 on Thursday, January 29, 2004 @ 01:10 PM EST

That's what I also asked/wanted to know: Nice story, but what is the question here ? :-) [ No Comments Allowed for Anonymous, please register ]

Re: California Foreclosure question by lp1 on Thursday, January 29, 2004 @ 01:22 PM EST

Re: California Foreclosure question (Score: 1)
by cjmazur on Thursday, January 29, 2004 @ 04:06 PM EST

my original question was understanding the precedence of HOA liens, and who gets pait what.

RonaldStarr asked what my play was, perhaps I should have answered privately.

There is a HOA lien coming up that 1200. That is a small enough amount to buy and see what happens. Learn buy doing. If I am successful, I'll post here.[ No Comments Allowed for Anonymous, please register ]

Re: California Foreclosure question (Score: 1)
by Lufos on Saturday, February 28, 2004 @ 09:39 PM EST

In California.

I draw the assumption that in the original foreclosure of a second lien the HOA. There were no overage bids. No money for the Trustee to Dispurse. He cuts deed to the Home Owners Association. This deed is subject to the existing lst Trust Deed ahead of it.

Now the second part. A foreclosure from the prior Trust Deed from what I surmise, once again there was no overage bid.The Bene of the lst Trust Deed is now in ownership of the unit. any overage bids go to the party then in title at the moment of foreclosure sale.

I know what you are thinking. To monitor the foreclosures of Home Owner Association. As was pointed out, generaly, not too brite a bunch of buttons. Yes, by all means, But:

Watch the first that is ahead and usualy behind on payments. Watch the taxes, cause they are also behind. Also watch any prior IRS or Calif Franchise Tax liens that may be in position between the first and second. They are always a nasty shock. But, dont give up, there is a way to negotiate for their removal. You use the Offer In Compromise Form and attach thereto on submission a nice friendly letter explaining the circumstances of a foreclosure with no overage bidding. You might point out that the unit was flooded and they had canoe races in it prior to vacating. Come up with some kind of a story and attach a picture. No no not of you of the damaged apartment. Shoot it through a screen if necessary.

I hope this explains, good luck, you are about to meet some very challenged persons who participate in the management of the average Home Owners Association.

Cheers Lucius [ No Comments Allowed for Anonymous, please register ]

Re: California Foreclosure question by WheelerDealer on Saturday, February 28, 2004 @ 10:24 PM EST

Re: California Foreclosure question by cjmazur on Saturday, February 28, 2004 @ 10:51 PM EST

Re: California Foreclosure question (Score: 1)
by hibby76 on Monday, June 07, 2004 @ 02:18 PM EDT

Shouldn't this be in the forums instead of in the article section?[ No Comments Allowed for Anonymous, please register ]

Re: California Foreclosure question by REI123 on Tuesday, June 15, 2004 @ 04:44 AM EDT

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