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Old 09-24-2013, 06:14 PM
 
103 posts, read 241,347 times
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Back in 2010 my prior HOA foreclosed on my home for amounts outstanding under $5000. Why they would want to do this, when they took it subject to both the first and second lien is beyond me, but, alas, they did it. However, my first lien lender didn't record a foreclosure until about 9 months later. Fast forward 2.5 years and I want to buy another home. Let's assume that for whatever reason, I'm not eligible for the new 1 year waiting period, and must wait the three years. Does anyone know if the three years runs from the date I lost title to the home (i.e. the HOA foreclosed) or when the bank got around to recording it?
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Old 09-25-2013, 08:29 AM
 
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from recording date
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Old 09-25-2013, 08:41 AM
 
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Quote:
Originally Posted by SouthernBound? View Post
Back in 2010 my prior HOA foreclosed on my home for amounts outstanding under $5000. Why they would want to do this, when they took it subject to both the first and second lien is beyond me, but, alas, they did it.
Well you first have to realize "they" isn't your neighbors - it's the HOA corporation which is being run and advised by the HOA attorney and HOA management company. These vendors profit from the threat of foreclosure and the foreclosure itself.
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Old 09-25-2013, 09:12 AM
 
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Originally Posted by SouthernBound? View Post
Let's assume that for whatever reason, I'm not eligible for the new 1 year waiting period, and must wait the three years.
Your problem is much bigger than that. The waiting period for buying a new home is the least of your worries. You still owe the bank money for your old house. Did you declare bankruptcy yet?

Let's say you foreclosure and the bank takes a $100k loss. They can and will sue you for the money, receive a judgement and could force the sale of some of your belongings or garnish your wages. Depending on the state, they (or a collection agency who buys the judgement) could decide to do this 20 years from now when your back on your feet. So if the house is foreclosed on, you may have to declare personal bankruptcy in order to prevent them from collecting from you later on in life.

You need to do some research on your state regarding foreclosures and deficiency judgements. These are just starting to hit the courts from foreclosures back from 2006 now that people are back on their feet.
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Old 10-01-2013, 11:46 AM
 
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You might want to contact the Nevada HOA Victims Justice Center. A friend of mine went through almost the same thing. They foreclosed on his house for about the same amount. Maybe they can help you!

The website is nevadahoavictims.com

You might be entitled to damages, so I would def contact them.

Last edited by cecilcecil10; 10-01-2013 at 12:00 PM..
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Old 10-01-2013, 07:50 PM
 
Location: MID ATLANTIC
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Why would someone not paying their bills be entitled to damages?

This country continues to baffle the many.
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Old 10-09-2013, 11:19 PM
 
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Because the way that the HOA is handling these foreclosures is not what the law was intended for.
They think they can get away with it, but if you're current on your mortgage, they're not supposed to do that. The law was intended that HOA's were able to get their money when a house goes into foreclosure by a bank. When you're current on your mortgage, the most they should be able to do is to put a lien on your house.
The HOA's here in Nevada auction off these properties for less than 5% of the market value. That's just not right.
That friend of mine was current on his mortgage, and he owed the HOA $790. They assessed a ridiculous amount of fees and then foreclosed on his house for $8500!!! His house was worth more than $200K
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Old 10-10-2013, 08:16 AM
 
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Originally Posted by cecilcecil10 View Post
That friend of mine was current on his mortgage, and he owed the HOA $790. They assessed a ridiculous amount of fees and then foreclosed on his house for $8500!!! His house was worth more than $200K
Although a bad situation, your friend should have paid his bills on time. If you're late on your mortgage, hoa dues, real estate taxes, each one can take your home away from you.
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Old 10-10-2013, 10:13 AM
 
1,263 posts, read 2,646,009 times
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Quote:
Originally Posted by cecilcecil10 View Post
Because the way that the HOA is handling these foreclosures is not what the law was intended for.
They think they can get away with it, but if you're current on your mortgage, they're not supposed to do that. The law was intended that HOA's were able to get their money when a house goes into foreclosure by a bank. When you're current on your mortgage, the most they should be able to do is to put a lien on your house.
The HOA's here in Nevada auction off these properties for less than 5% of the market value. That's just not right.
That friend of mine was current on his mortgage, and he owed the HOA $790. They assessed a ridiculous amount of fees and then foreclosed on his house for $8500!!! His house was worth more than $200K
That's a terribly misleading statement. "They" auction it for auction value, which establishes a market value through bidding. Also, it's auctioned through a professional auction system, not sold by the HOA.

If your friend's house was worth $200,000, it did not auction for $8,500. If your friend's house really went for $8,500, that means it was only worth about that much given debt, damage, etc. But I suspect you mean your friend got $8,500 after the auction, and that was his remaining equity.

Do you know how auctions work? Lots of investors and other buyers go to buy properties at auction, and they bid against each other. If one guy offers 9k on a 200k house, the next guy offers 10k, then the first offers 11k, and so forth until the bids reach the point where the investers think it's not a profitable deal anymore AKA the value of the house!!

The HOA's "assessed fees" include lawyers pay, legal costs, auction costs, etc. It's all itemized. It is very expensive to foreclose - your friend should have paid the $790 when he received one of the MANY legal notices.
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Old 10-10-2013, 03:50 PM
 
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You are wrong, the HOA's auction off the properties for the amount that they say was owed (which included fees etc.)
So how come my friends house was sold for $8500? Because there weren't any other bidders? Highly unlikely!
I totally agree that you should pay your HOA dues in time, but that doesn't mean that the HOA can foreclose on your home while you're current on your mortgage.
Do some research on the internet and see for yourself how the HOA's are operating. Even de Attorney General is now involved!

Here is a link to a house that was foreclosed by an HOA for $4,201. Just to give you an idea:
278 Grand Olympia Drive, Henderson, Nevada 89012 | Las Vegas

And this is just 1 of MANY!!!
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