Posted by Ronald * Starr(in No CA) on May 10, 2003 at 03:22:53:
Jim V-----------------------
I think you may be close to the truth here. Perhaps the HOA has had a foreclosure on their lien and the HOA has ended up as the owner of the property. And the have also initiated an eviction lawsuit, got a default judgment, and have a date for the sheriff to come and disposess the occupant.
That would fit the words of the person.
This could happen even if the unit is not empty.
I think that this property occupant was not aware of everything that was going on. Lost the CC&Rs? Sounds like somebody who is not well organized, asside from being in the hospital.
Good INvestingRon Starr******
Can you EVICT AN OWNER? - Posted by Jerry-IL
Posted by Jerry-IL on May 08, 2003 at 22:57:30:
I visited a pre-foreclosure yesterday who is the owner of a condo. The first (98K) filed the lis pendens (suit) in January during a period when the owner was hospitalized with a heart attack. He is also several months behind on the second (25K). The owner paid $5K in March in an effort to reinstate, but that wasn’t enough. He just got around to returning my January message and wants help. Rehab is about 15K. ARV might be as high as $125K, so there’s no equity and no deal without some serious discounting. Since there is no scheduled auction date yet, I’m trying to deal with the lenders as fast as I can.
But something surprising to me has come up. The homeowners’ association dues are behind about $1,600. OK, seen that before and it was not a problem. They got paid the arrears when the property sale closed. But in this case, the law firm hired by the HOA says that the $1,600 must be paid by cashier’s check by May 13th in order to notify the sheriff and “STOP THE EVICTION”. What??? Can the HOA do any more than foreclose? How can an owner in possession of the property be evicted like a tenant? Is this a case of an over-enthusiastic clerk overstepping her bounds with this threat, or can the guy be evicted? I have to advise the owner with his best interests in mind - and soon. He is resistant to bankruptcy, which seems like a good option for him now.
Thanks for any help.
Jerry in Illinois
Re: Can you EVICT AN OWNER? - Posted by Don Dion
Posted by Don Dion on May 09, 2003 at 09:03:16:
YES!! Read the bylaws with care. The association reserves the right to buy back your unit at any time for many reasons listed in the bylaws including non payment of dues.
In this case check to see if the current owner has mortgage insurance on his loan with the bank. If he does wait till the bank buys the home at the foreclosure to protect themselves in the first position. Then make an offer below market to the bank to buy the unit. Most mortgage insurance payments are in the range of 15% to 35% of the loan balance. This will give you the margin you need for future profit. Check his loan docs to see what the original downpayment was so you can figure the mortgage insurance payout.
Re: Can you EVICT AN OWNER? - Posted by Ronald * Starr(in No CA)
Posted by Ronald * Starr(in No CA) on May 08, 2003 at 23:58:04:
Jerry–(IL)------------
I’m not an attorney and I don’t know IL law. Barely know any CA law, for that matter.
However, I have never heard of such a thing. You are right, the HOA can file a lien in the county land office. Here in CA, they can do either a judicial foreclosure or a non-judicial one. Usually they do a judicial one since it is faster and cheaper.
You might ask the owner to show you the C C & Rs for this complex and see what they say.
My guess is that whoever you were talking to was confusing eviction with foreclosure or was, as you suggest, trying to apply pressure on the owner.
I hope that your good work will lead to good things for you.
Good Investing and Good HelpingRon Starr*****
Re: Can you EVICT AN OWNER? - Posted by Jerry-IL
Posted by Jerry-IL on May 09, 2003 at 10:37:36:
You say that “the association reserves the right to buy back your unit at any time for…non-payment of dues”. It seems that buying back the unit would involve either a foreclosure or other process as opposed to EVICTION, no?
This owner cannot find his copy of the bylaws. Is the HOA (or their attorney) obliged to cite to me the legal basis for an eviction?
Jerry in Illinois
Re: Can you EVICT AN OWNER? - Posted by Jim V
Posted by Jim V on May 09, 2003 at 19:25:45:
Ron Starr,
I believe you meant “Usually they do a non-judicial since it is faster and cheaper”.
If I was to guess on the IL condo, I’d say the HOA has already foreclosed. If it was vacant at the time of sale, there’s the possibility of immediate possession with no redemption period which could account for the scheduled May 16 eviction.
Just a thought.
Jim V
Re: Can you EVICT AN OWNER? - Posted by Don Dion
Posted by Don Dion on May 09, 2003 at 10:44:18:
The HOA only has to refer to your bylaws since the owner of the unit when you purchased your unit is required to issue these to you at the time of the transaction. In most cases you can purchase a new copy of the bylaws from your HOA.
Most of the time the HOA does not really have to buy back the unit, they file the foreclosure and in court at the time they stand up and offer their outstanding debt , using your numbers $1600. The mortgage holder stands up and offers a combination of their outstanding debt plus the $1600 they will have to pay the HOA to secure their first position. The mortgage lender ends up with the property and then sends the sheriff to your unit to do the eviction.