Legal Question in Real Estate Law in California

I am interested in purchasing an HOA's interest in a property. There's 1st for 323K. However, the HOA foreclosed for 5700.00 I can take over this property by paying. The property is worth 450K. Is it worth it to do it? The property is in CA.

Asked on 7/26/13, 6:10 pm

2 Answers from Attorneys

Bryan Whipple Bryan R. R. Whipple, Attorney at Law
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Lawyers are cautioned to give legal advice, not business advice. So, I'll defer attempting to answer the specific question (Is it worth it?) and mention a few things you, the prospective investor, should research before making your decision:

(1) In addition to the 1st, what other loans and liens would your equity interest be behind? Is there a second? A third? Mechanic's liens? Judgments? Assessments? etc.?

(2) Who says the property is worth $450K? Zillow? the HOA? A licensed appraiser with recent local experience?

(3) Deals like this draw experienced speculators like flies. Maybe you should investigate why it's being offered to you while the foreclosed-property speculators aren't buzzing around.

Maybe it's a good deal, but it's a tough business, full of experienced risk-takers who have been around the block a few times. Get good advice, do research, and act thoughtfully.

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Answered on 7/26/13, 7:14 pm
Anthony Roach Law Office of Anthony A. Roach
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You need to be aware that you will still be subject to the first deed of trust on the property, which is not wiped out by the HOA's foreclosure.

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Answered on 7/29/13, 12:43 pm

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