Never say never when it comes to foreclosure investing.
People often ask if it is possible to buy a CONDO based upon the HOA Lien that is foreclosing. The answer is yes.
They then ask if that is all they have to pay. The answer is usually more complicated... But there are exceptions. Today we want to tell you about an exception that took place just yesterday. This is not the only property like this either. We just saw a similar foreclosure coming up in another county, and we helped a client get a similar deal not long ago. So what is the story behind a person being able to buy a CONDO for only $7,286.00?
A CONDO on Cabrillo Park Drive in Santa Ana sold yesterday for the HOA Lien that was filed AFTER the bank foreclosed on the property and became the owner. Therefore, there was no bank loan to be paid.
The lender, Fannie Mae, became the owner of the property on 5-28-2013. In the process, their loan was wiped out. The HOA filed a lien for unpaid HOA dues AFTER that. That lien went to the Trustee's Sale yesterday. Fannie Mae could have protected their ownership and reacted to the foreclosure notices. They didn't. Instead the property went to auction and someone bid and got the property.
Now, Fannie Mae can come back within 90 days and buy the CONDO back from the person who bid at auction*. If they don't, then the sale is done and over. Odds are they won't, and the new owner got a bargain. We will see.
*California law gives the CONDO owner 90 days to buy the property back. Fannie Mae could exercise this right.