My sister is an idiot. We only hear from hear from her when they are in jail or have money trouble. Good luck.

quote:

Originally posted by Rey HRH:
It sounds like you're in the middle of drowing people who are still flailing around. That's a dangerous situation for you to be in.

Your SIL, you MIL, and her husband, they may be not smart people but they're adults and they're responsible for their own lives. Unless one or both parties ask for your help expressly, you can't help them. It's not in your backyard.

Some things, the less you know, the better it is for you. This is one of those cases.

This is an accurate statement.

Sadly, as my MIL is still dealing with issues from FIL's death and sorting out the pieces she is vulnerable and SIL has her number.

My wife was so pissed the other day she was just going to walk away and let the shit hit the fan when things went from bad to worse. After calming down I think wife is going to see her mom tomorrow because SIL will not be there and have long talk with her.

I sort of skimmed over the article, but I used to deal with this situation everyday, across the country at the bank I work for.
Is there currently any mortgage on the property? If so, call whoever is servicing the mortgage and let them know. We always stepped in and stopped HOA foreclosures.
If that is not the case, the best option is to try to establish a payment plan with the HOA. If the collections attorney for the HOA refuses, the next best option is to obtain an attorney to have to FC process postponed.

Whether there is a redemption period depends on state law.

So wife went to talk to her mom yesterday, mainly out of concern that she would get tied up in this and not get her money back.

The supposed story is that SIL "though" they had settld case with HOA and had no idea it went to court. They were alerted when some random guy showed up and knocked on their door and said that he just bought the house at auction. They claimed they never received any notice either by being served or certified mail, which I am calling BS on.

They are going down to courthouse tomorrow as they were told there might still be a way they can reverse the process but I guess we will see.

My wife had a long, serious and direct conversation with her mom about the fext we feel she is being taken advantage of and the bigger fact that if her other daugher and SIL cant pull their collective shit together with the amont they earn then there is a much larger issue at play

This whole situation makes no sense. I don't understand how something could get to the point of the new owner knocking on the door and that was the first notice they got.

I am going to call major BS right along with you.

None of this makes sense. They make $10,000 a month after taxes. There is no excuse for running to momma to be bailed out. Are they on drugs? What are they spending their money on? With that type of income they should be able to get themselves out of just about any situation without calling in mom to bail them out.

How at 52 & 67 do they not have one penny in savings?

None of this makes any sense at all.

quote:

This whole situation makes no sense. I don't understand how something could get to the point of the new owner knocking on the door and that was the first notice they got.

Debtors tell stories like this on a regular basis. So do teenagers and addicts of various types. You have to listen to the music and not the words for it to make sense.

I am in total agreement with Skins and ZSMICHAEL on this...$10,000 per month and zero foreknowledge...over a HOA lien...gotta be something else (gambling debts, drugs or just an outright scam on your MIL)...I do guess anything is possible in today's world though ...Kev, you, your wife and MIL are in my thoughts and prayers...this is screwed up...good people don't need or deserve shit like this

Thanks for all the feedback and for those that guessed "other issues"....Some backstory to put it into focus;

SIL is a "recovering everything" and averages a relapse every year or so, her son is a 30 y/o addict who lives with his idiot wife and the baby they never should have had and the BIL is old and tired, he is a good guy but I think has mentally checked out knowing he will never win.

So yes, there are other factors art play and I am not knocking addiction as I am almost 3 years sober.

Some folks are meant to rent.

quote:

Originally posted by Skins2881:
This whole situation makes no sense. I don't understand how something could get to the point of the new owner knocking on the door and that was the first notice they got....

Not at all uncommon. People like the SIL are very good at not opening "legal" looking letters. They assume its bad news so they avoid it. Then one day, Notice of Default Judgment or Notice of Judicial Sale shows up in the mail box and they avoid it like everything else. Yada, yada, yada, and there is a guy at the door with a new deed.....

quote:

Originally posted by Southflorida-law:

quote:

Originally posted by Skins2881:
This whole situation makes no sense. I don't understand how something could get to the point of the new owner knocking on the door and that was the first notice they got....

Not at all uncommon. People like the SIL are very good at not opening "legal" looking letters. They assume its bad news so they avoid it. Then one day, Notice of Default Judgment or Notice of Judicial Sale shows up in the mail box and they avoid it like everything else. Yada, yada, yada, and there is a guy at the door with a new deed.....

In Whackyland, foreclosure notices were required to be sent certified or registered mail, return receipt requested. Then the usual whiners and bitchers argued that people were leery of accepting such mail, so they changed the statute, to require that the notices be sent both cert/reg’d/RR and first class. Notices must be sent to owners, borrowers, if they are not the same, and all holders of an interest in the property which would be affected by the foreclosure, with a handful of exceptions. Some private loan originators would sell interests in the loan to dozens of people. It was not unheard of to have to mail many dozen, occasionally more than 100, notices for one mailing on one foreclosure. Of course, when you want to reinstate or payoff to redeem the property, all that must be repaid.

My company handled many thousands of foreclosures over the years. I can’t tell you how many times, a borrower would contact us on the eve of sale to claim they had not received any notices. Our files almost always had the return receipts signed by one or all of the borrowers, and sometimes the return that mail was refused.

Irresponsibility is very costly.

I'm not defending your relatives, but the first notice I got several years ago was from the sheriff giving me 30 days to vacate. Turns out Bank of America (go figure) screwed up. I owed about 3k on the mortgage, we ended up settling for the rest of the money owed rather than suing. It's often an excuse, but it does happen. B of A has been sued a number of times for this.

something seems fishy, if they have a mortgage already, not sure how the "new owner" could jump positions. Second, I live in KY and am treasurer of our HOA, we file liens all the time and foreclose, lots of paperwork but the foreclosure just means the debt is validated. We cannot jump claim unless we settle in full with the other lien holders. Instead we sell the foreclosed lien for $.50-$.75 on the dollar - one day it will be paid in full with interest.

quote:

Originally posted by bjor13:
something seems fishy, if they have a mortgage already, not sure how the "new owner" could jump positions.

The new owner takes his title subject to all existing liens and encumbrances which were prior to the lien forclosed at the sale.

If there was a mortgage, it is undoubtedly senior and prior in time to the HOA lien, so the buyer at the lien sale takes subject to that mortgage, takes over payments, pays it off, etc. or risks being forclosed out of his ownership in turn.

Many CC&Rs say the lien of the HOA takes priority over all other liens, but they will also almost always say that the lien of a bona fide first mortgage will be senior to HOA liens. If it does not, getting a first mortgage will be very difficult, and probably the result of carelessness by the lender in not reading the documents. Their title policies usually have a provision, or an endorsement as further protection.

If there is a second mortgage, HELOC, etc. that lien may not have priority and may have been wiped out. Each situation has to be analyzed carefully.

I have never heard of a HOA being able to foreclose on a home. I know at least with my HOA they can file to put a lien on your home. If you owe the HOA $5,000 for whatever and never pay it, then they can put file to put a $5,000 lien on the home and when the home ever gets sold they would get their $5,000 out of the sale. I have only heard of foreclosures by banks for mortgage payments not being made, but maybe I am wrong.

In KY, when the banks find out about this - they foreclose and motion to dismiss the HOA claims - usually they are successful.

quote:

Originally posted by JALLEN:

quote:

Originally posted by bjor13:
something seems fishy, if they have a mortgage already, not sure how the "new owner" could jump positions.

The new owner takes his title subject to all existing liens and encumbrances which were prior to the lien forclosed at the sale.

If there was a mortgage, it is undoubtedly senior and prior in time to the HOA lien, so the buyer at the lien sale takes subject to that mortgage, takes over payments, pays it off, etc. or risks being forclosed out of his ownership in turn.

Many CC&Rs say the lien of the HOA takes priority over all other liens, but they will also almost always say that the lien of a bona fide first mortgage will be senior to HOA liens. If it does not, getting a first mortgage will be very difficult, and probably the result of carelessness by the lender in not reading the documents. Their title policies usually have a provision, or an endorsement as further protection.

If there is a second mortgage, HELOC, etc. that lien may not have priority and may have been wiped out. Each situation has to be analyzed carefully.

quote:

Originally posted by StorminNormin:
I have never heard of a HOA being able to foreclose on a home. I know at least with my HOA they can file to put a lien on your home. If you owe the HOA $5,000 for whatever and never pay it, then they can put file to put a $5,000 lien on the home and when the home ever gets sold they would get their $5,000 out of the sale. I have only heard of foreclosures by banks for mortgage payments not being made, but maybe I am wrong.

Every state is different. Moreover, the rules have changed in many states in recent years.

I’ve processed thousands of foreclosures for nonpayment of HOA dues in California. Once the BOD acts, it follows the usual deed of trust foreclosure process. Most of these result in payment before the sale process gets very far, but every once in awhile, one would go to sale.

Years ago, there might be generous equity over and above the loan balances, but someone who isn’t paying mortgage payments isn’t throwing money away on HOA dues either.

A few times, we foreclosed on properties that were free and clear. In one case, the foreclosure went, start to finish with no contact from an owner. There was no loan on the property. After the sale, we heard from a doctor who was the nephew of the former owner who had died. The owner had been a character, constantly fighting with the HOA over everything. He owed over a year when he suddenly died. The nephew didn’t live there, never filed any death certificate, probate, never contacted the HOA or paid any attention to the mail the decedent kept getting. He claimed to be totally surprised when he found out the property had been sold, and promptly sued, a Whackyland tradition. He claimed the HOA hated his uncle and did the foreclosure to cheat him out of his property. Despite virtually no evidence whatsoever to show this, the HOA insurer settled the case. The sale had generated significant sale proceeds net of the HOA lien and charges, which the nephew was entitled to.