Home Association lien?

Question

I am twenty years old and interested in buying tax lien property. I have been trying to do research on the topic so I decided to try here. Please forgive me for the long story.
There is a property in my hosing complex that the home association has put a lien on the house for failure to pay monthly dues. The house was paid in full but the owner took a second mortgage out on the house to put extra money in their pocket. Later on the owner find himself in a financially situation and couldn’t pay back the money that was owed. The owner then met this scam artist that told the owner in order to get you out of this situation I will give you 30 thousand dollars and take over the mortgage for the deed of your house. The owner gave the person the deed and the person never kept their end of the bargain. The 30 thousand was never paid to the owner and the monthly payment of the mortgage was never paid. The owner up and move to never be seen again. The scam artist is never to been seen again also. Months go on and the monthly home associations dues has not been paid. The hoa put a lien on the house for the amount due. My question is would it be possible for me to talk to the hoa to see if I can pay what’s owed to the hoa to obtain the title for the house or do I have to wait for the house to go into foreclose stage? Once the house goes into the foreclosure stage is it possibly to win the bid of a lien place by the hoa? Is there any other fee’s I have to watch out for, or do I get a free and clean title?
Please excuse my grammar error and use of words; writing is a weakness of mine, due to me being from another country.

Answer 1

The association does not legally have the right to turn over deed to you or anyone else for that matter, even if you pay the debt you would still have to deal with the mortgage holder has the primary lien in the property, the HOA lien is subordinate. Mortgage companies typically have a "due on transfer" clause that the owner cannot just let someone assume the mortgage without their approval. But in any event, If no payments are made mortgage company will file a notice of intent to foreclose. This notice will go to the owner of record, the borrower(s) on the loan, any additional lienholders of record, and "unknown john doe's" residing in or having interest in the property. They have first rights.Normally the mortgage company will just pay the HOA lien to free up title so they can sell. You may be thinking of tax certificates, but be careful of any one promising you can buy a property for the amount of just an HOA lien, not possible.

Answer 2

Use extreme caution in this situation. The HOA will be glad to release their lien on this property if you pay the back dues owed to the HOA. However, you STILL have to deal with the liens in place by one or more mortgage companies. Since the owner skipped out on the mortgage, the liens held by the mortgage underwriters will need to be paid off in order to gain clear title.

From what you are telling me, I'd guess that the mortgage amounts owed exceed the value of the property.

If the property goes to foreclosure, you are free to bid at the foreclosure auction, but be very careful in checking the assorted liens which may be attached to this property.

Answer 3

I think you have to wait for the home to be foreclosed on, and then you could buy it.