In this episode, we look into the recent case of Niki-Alexander Shetty v. HSBC Bank USA, N.A., et al., a lawsuit involving a condominium in La Habra and foreclosure by the homeowners association. We explore the issue of whether Shetty, as a successor in interest, can reinstate a prior loan that he never qualified for by merely being the successor owner after foreclosure. HOA lien foreclosures often have low bid amounts and because the HOA is collecting on relatively smaller amounts owed than mortgage lenders generally. They also tend to sell for lower amounts when the prior mortgage is not wiped out due to it being an HOA foreclosure. While buying a property subject to an existing mortgage doesn't sound like a good deal, it can be a less expensive way to get into foreclosures - and armed with the knowledge that you can reinstate said mortgage. Always check with an attorney about the specific facts and issues related to your transaction!
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This content is not legal advice. Contact an attorney for legal advice.
For specific real estate sales or mortgage lending questions, you may contact chuck@fund2000.com