Bad Credit Eliminated

I was asked recently about a foreclosure action by a homeowner’s association. The person had received a letter from their homeowner’s association saying they were filling a lien against her, and that she would be facing homeowner’s association foreclosure, because of unpaid dues.

She was already facing foreclosure from her bank and was confused about what was going on. She thought that only banks could foreclose.

So… here’s the deal. Homeowner’s associations incur expenses on behalf of the homeowner. The expenses could be from any number of things; like insurance, maintenance of the exterior, swimming pool maintenance, grounds keeping, parking lot upkeep, and so on.

If the homeowner doesn’t pay, the association has no other recourse than to file a lien against their property. If collection efforts on the lien fail to get resolved, the next step is for the association to foreclose on the property.

But the reality is this. . .

If the bank has already started foreclosure proceedings, it would be a waste of time and money for the association to actually begin additional foreclosure proceedings. The association would be at the end of the line in the “pecking order”, for priority in receiving a payoff from foreclosure.

The way that works is, any junior loans (or liens except for unpaid taxes) would be wiped out when the first mortgage holder foreclosed. The homeowner’s association would receive nothing.

So what does all this mean to the lady asking the question? It means that the homeowner’s association is bluffing and hoping that she’ll pay the bill.

Can you explain the process of shorting on a foreclosure? How do the negotiations work with the lien holders? What would be a normal offer for a foreclosure property (as a percent of retail value)? Thanks, first best answer gets my ten points.

Asked by:Christopher B

I would like to learn how to do credit repair. Are there any certification programs? Any suggestions would be highly appreciated. Thank you.

Asked by:fumiko

I purchased a foreclosure in June 2008. I know the Foreclosure Prevention Act underwent many revisions. Does anyone know if the final version which the President is expected to sign still includes the provision for the $7000 tax credit for the purchase of owner occupied foreclosed homes? I am not a first time homebuyer.

Asked by:Stacey C

I preferably need a studen credit card (to build up my credit-seeing as how I do not have any line of credit). I just need to know which credit cards/student credit cards instantly approve/deny you or at least you find out some sort of answer within a few hours.

Asked by:ersan b

I’ve been looking up foreclosures at the county office to buy a foreclosure (the ones about to be auctioned). Someone said I should be looking at REO foreclosures. What’s the difference, and how do I buy one and or get info on these?

Asked by:BlackDahlia

I want to invest in a foreclosure. I have the income to support the payments, but don’t want to put anything down.

Asked by:jrdude69

I have 4 credit cards (limits are 1000, 3300, and two 500s) and was considering getting rid of one 500 credit card. Should I pay the whole thing off and KEEP it or GET RID of it??

Asked by:Thomas G

Someone I know is filing for bankruptcy. I was wondering if there were any effects that bankruptcy would have on her as far as credit. Does bankruptcy go on any kind of personal record? I’m just wondering if she’ll always have to worry that filing bankruptcy will effect her credit permanently or any other issues throughout her life?

Asked by:Jason H

My parents recently lost their home to foreclosure and now they are planning to file for bankcrupcy. They recently went to file their taxes and they found out IRS is billing them 52,000 for abandonment even though they have tried for months asking for help from the banks. Need some advise on how i can help guide my parents to the right people to settle the foreclosures.

Asked by:Raymond A