Countless properties located in this state are bound by a recorded declaration of covenants, conditions and restrictions (CC&R’s) enforced by homeowner associations (HOA’s). When a violation arises because an owner has failed to pay association assessments, an HOA may commence a foreclosure similar to a mortgage or trust deed foreclosure.
After proper notices have been given, the HOA may conduct an auction sale of the property. The highest bidder, in excess of the amount owed the HOA, will get title to the property. You may thus be able to acquire these foreclosed upon properties for a relatively nominal amount, namely, the amount of the unpaid assessments, plus foreclosure related expenses.
But watch out! There may still exist other liens and encumbrances against the title. This area of law is presently in a state of continuous change.
I can investigate the property in which you are interested and advise you of any risks that may arise should you be the successful bidder.
