If HOA forclosed & purchased that home at auction, can the HOA evict the homeowner after the 90 day waiting period? The 1st on the home is current and in good standing; however, the home has a negative equity of $190K. How does the HOA get paid if the 1st lein is superior?
Answer
The HOA doesn't get paid in that situation.
Answer
The HOA forecloses and takes the property subject to the superior lien. If the loan is not paid, the first forecloses and the HOA is out as well. If there is sufficient equity, the HOA can sell to a third party who will also be subject to the senior lien.
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