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No, at least not here in Hawaii, and I can't imagine it being the case anywhere. The purchaser of an assn foreclosure buys it subject to the existing mortgage. Usually it goes back to the Assn unless there is a lot of equity in the property, in which case investors might bid it up to the point where what they are paying at the auction, plus what is due on the mortgage(s) still leaves them room to sell at a profit. Today (2010) that's unusual. What usually happens here in HI is that it goes back to the Assn for their $1 bid, and then the Assn just lets it sit there, not making payments on the First, until they foreclose on the property themselves. Sometimes, knowing it takes a long for a foreclosure to take place, the Assn will even rent the property to get some income from it until the First forecloses. After, when bought at auction, the Assn owns it.
What else can I help you with?
Who pays off your first lien mortgage holder when you are being foreclosed on by the homeowners association?
The process of distributing the funds received from a foreclosure should be part of the foreclosure documentation and process. You can find the answer you want in those instruments.
If your first original mortgage is current can a second mortgage foreclose?
Yes. Any lien holder can initiate foreclosure proceedings when their lien is in default.
Type of lien that takes first position in foreclosure?
Real property tax liens(s), followed by the holder of the oldest recorded lien.
What happens to second mortgage during foreclosure?
If you're in the US and assuming it's the 1st that foreclosures… The 2nd lien hold is notified of the foreclosure and has the option of bidding on the property at the foreclosure sale (normally they don't). After the property is sold (which can take a while if they have to market it and the market is bad), the 1st lien holder gets paid first. Then if there are excess funds (which is not common), those funds go to the 2nd lien holder to apply toward their balance. The mortgagor is still responsible to the 2nd lien holder for any balance left due to them.
Can a self managed HOA seize a car owned by a unitowner to pay off the 3500 dollars owed the HOA in delinquent dues as the unit is in foreclosure by the mortgage holder?
If the association wants to be accused of criminal theft, sure. To take the car the legal way, first, the association must file a lien against the delinquent unit. If the lien remains unpaid, then the association can file a lawsuit against the unitowner, unit, bank (as lienholder), and any subsequent purchaser of the unit for foreclosure of the lien. Fortunately for you, HOA dues are superior to any mortgage, lien, or deed of trust against the unit, so no matter what, the association will get paid. In the unlikely event the unit would not sell at auction for the association's foreclosure judgment amount, including attorney fees and court costs, the association could execute on the vehicle of the debtor/unitowner. I suggest consulting with a real estate attorney right away (see one who gives free consultations).
What is the difference between a foreclosure and short sale?
A foreclosure is the surrender of the property to the lien holder for nonpayment of the debt. A short sale is the sale of the property before the completion of the foreclosure in an attempt by the home buyer and the lender to avoid foreclosure proceedings.
Can a homeowners association lien be superior to the mortgage in the event of a foreclosure in the state of Florida?
Your association counsel is best prepared to help you answer this specific question.
If payments have been made to the second mortgage holder but not to the first Mortgage holder can the first mortgage holder reclaim any of those payments from the second mortgage holder?
No. However, in the case of a foreclosure sale (or any sale), the first lien holder will always be made whole (paid completely) before any sale proceeds are applied to the subordinate liens.
Mechanics lien on your house that is included in a Chapter 13 Can the lien holder start foreclosure on your house?
Yes they can, you will need to file a demurrer to inform the court that the house is involved in a bankruptcy - that may not avoid foreclosure however, it may only delay it.
What happens to to second lien if borrower defaults on first lien?
It may be accelerated and payable from the excess proceeds of the auction held by the first lienor in foreclosure, if there is any excess. --- improve the answer: If seond lien is not a superior lien (e.g. Tax lien is superior than MGT lien), when the first lien is foreclosured the second lien will be washed out --- Not exists any more. However, a superior lien, even a second lien, will still survive the foreclosure process which means the property owner (who has bought the property during foreclosure) still needs to pay.
What entities cannot initiate a foreclosure municipalities lien holders unsecured creditors homeowners association?
unsecured creditors
What happens to the first mortgage on a condo in Florida when the condominium association forecloses for unpaid association fees?
For the condo association foreclosure to be valid, the bank who holds the mortgage must be notified of the foreclosure action, and the mortgage company has the opportunity to do a couple of things: They can pay the delinquent condo fees themselves, to protect their own interests, and force the borrower to pay them back. If the borrower is unable to repay the condo fees, it could put the mortgage payments in default, and be grounds for the lender to begin foreclosure proceedings. If the borrower is behind in their mortgage payments, the bank can join in the condo association's foreclosure action themselves. This is actually a great assistance to the bank, as it saves them the time and trouble of initiating the lawsuit - they just get to piggy-back on the condo association's foreclosure, which makes the foreclosure sale happen that much sooner. And since the bank's lien has priority over the condo association, the bank would be the one to get paid off first if the property got sold to a third party at the foreclosure sale, or if nobody bid on the property, they would be the ones who would become owners of the condo. If, for whatever reason, despite getting proper notice, the bank does nothing and the condo association forecloses on the property. The first mortgage holder has a lien that always survives the condo association's foreclosure. In fact, second mortgages are usually superior to the condo association's lien for unpaid maintenance fees. Usually the condo association gets stuck with owning a property with at least one outstanding mortgage with an outstanding mortgage balance greater than the actual value of the property because of the decline in real estate value. Most condo associations allow the first mortgage holder to foreclose on the property after their foreclosure is done. The main point is that in Florida a condo association foreclosure has no effect on the first mortgage.
