QUESTION
What should I do next since there's still a mortgage on the property?
Asked on Aug 27th, 2013 on Foreclosures - California
More details to this question:
I bought a townhouse property that was auction at the court because the Association foreclosed on the property. There's a mortgage on the townhouse of $175K but the original owner passed away in 2012. I have the Certificate of Title and I am paying for the association fees every month. What should I do next since there's still a mortgage on the property? Am I responsible for that mortgage? Can I sell and/or rent the property? Please advice.
2 ANSWERS
This involves issues of law and public policy that are evolving every day. In Nevada, the statutes seem to say that a foreclosure by a HOA wipes out other liens, including mortgages. Some lawyers are taking that position. Some courts have recently ruled that even though the statues seem to say that, they won?t enforce them. You could hire a good real estate lawyer to file a quiet title action against the mortgage holder.
Answered on Sep 05th, 2013 at 12:50 PM
1 Award
You may not be liable for the mortgage if the HOA lien that was foreclosed was senior to the mortgage. You should have a lawyer examine the foreclosure of the HOA lien to determine its priority under state law.
Answered on Aug 27th, 2013 at 12:36 PM