Quote:
Originally Posted by kg52209
Thank you for the response. I have done that initial research type of items mentioned. It appears to tie back to attorneys in the Sellers, Hinshaw, Ayers, Dortch & Lyons, P.A. As you mentioned, multiple attorneys in their practice have different LLCs registered throughout the way and all link back to similar purchases of distressed properties.
Yes, the neighborhood has an HOA that is managed by a separate law firm.
|
Sellers, Hinshaw, Ayers, Dortch & Lyons was the lawfirm that basically wrote the HOA law that allows for foreclosure for things that CCRs do not allow for in older communities. Let that sink in.
The holding company is theirs. They use several companies like you said.
This is what happens:
1) Homeowner is naughty or otherwise was facing bank foreclosure and stopped paying dues.
2) Sellers is hired to put a lien on the property.
3) Fines accumulate before and after the above.
4) Sellers forecloses (technically the HOA does).
5) An auction is held at the courthouse to settle the lien.
6) Sellers is the auctioneer.
7) No one bids on the property or the bids are lower than the lien.
8) JMA then bids for the price of the lien.
9) JMA holds the property until sold on the open market or the bank forecloses on the note.
They do this for two reasons:
1) Keeps it off the HOA's book. A neighborhood might have difficulty getting people to buy in if they knew 20% of the houses were foreclosed on by the HOA. People might think the HOA to be tyrannical. An easy only search would show the history of the HOA doing this. If done by the holding company then it never gets into the HOA's hands (it still does often at the final sale).
2) By using multiple LLCs like Sellers does they mitigate risk as far as lawsuits go. Better not to have all your eggs in one basket.
This is all done with the love of God in mind since the lawyer that made it easier for people to lose their house regardless of their CCRs is also a certified Christian councilor and goes to church.
Now what's interesting about the property in question is that it wasn't the tradtional double foreclosure where the HOA takes it first because they can and then the bank comes and swoops it back up to satisfy the note.
There's something else going on here. There's an extra layer.
The hand off went from the previous owner after he racked up $3482.25 in unpaid whatever to the HOA and then went to JMA. But it didn't go back to the HOA or bank for disposal. It went to someone using the name Kim Tran. But this isn't the only transaction between these two.
While it has happened and is certainly possible, if we were to believe the record, Mr. Tran bought a $650,000 (busted tax value) house for $4000. The HOA doesn't care as long as they got there $3482.25.
But it remains suspicious but that's just me. I'm going to guess that Mr. Tran is an investor with deep pockets who got the deal of a lifetime. That property is less than 5 miles from me.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
