Posted by JD on January 17, 2003 at 10:54:20:
“otherwise not” is short for: no it wouldnt do you any good because the Investor will execute a deed of trust to his friend or LLC which will be junior to your HOA lien. Unless the coventants subordinate HOA liens to all TD’s, which is about a 100:1 probablity.
HOA leins - Posted by Craig Goodson
Posted by Craig Goodson on January 15, 2003 at 20:56:33:
I bought a foreclosure property in a foreclosure auction. In CO, it requires a 75day redemption period. During this redemption period, another investor went directly to the owner and paid him to Quitclaim the deed over to him. Because I own the Certificate of Purchase on the property he still has to pay me my money with interest. I was curious, however, since there is an HOA lein against the property if I could purchase the HOA lein, file an intent to redeem with the Public Trustee’s office, and use my own Certifiate of Purchase as the redemption instrument? Would I be able to get the property back using this method? The investor has already hired a contractor and is in the process of rennovating the property. However, he has not yet filed an intent to redeem. According to CO law he has until 15 days prior to the 75 redemption period to do so. That period ends on Mon, Jan. 20th. Do I stand a chance at getting this property back, or should I just take my money with interest, rack it up as experience, and move on?
Re: HOA leins - Posted by JD
Posted by JD on January 16, 2003 at 12:05:03:
How big is the HOA lien? If it is $10K and you could buy it for $5k, it might be worth buying, otherwise not. FYI, the 20th is a holiday, so the deadline will be extended to the 21st.
Re: HOA leins - Posted by JT-IN
Posted by JT-IN on January 15, 2003 at 22:26:25:
Craig:
I don;t think that there is much you can do to disrupt the process of the Redmption Period. Maybe due to some stroke of luck this investor will do some rehab and miss the deadline to redeem. Stranger things have happened.
For the next one that you buy, you should be the guy cutting the deal with the homeowner to buy their redemption rights. It is bet to never assume that you will end up with something, that you are not completely in control over. The best way to be in control is to acquire the owner’s rights.
Just the way that I view things…
JT-IN
Re: HOA leins - Posted by Craig Goodson
Posted by Craig Goodson on January 16, 2003 at 14:51:43:
The HOA loan is only $2500. I’m not sure they would sell it for any less than that. But my point being, can I by purchasing the HOA lein, have a right of redemption over the investor and be able to take possession of the property I bought the certificate of purchase for.