I found an auction happening soon for an HOA foreclosure on a property in a great area.
From all public records I have access to as someone who is new to this, it seems to not have any mortgage or lender involved. It looks like the property was paid for in cash in 2016.
Online estimates and comparables put the value between 800k-1M. The starting bid is way lower than that. If someone managed to snag it for even as high as 600k it would be an awesome buy.
Did I stumble upon a unicorn here or am I just not researching correctly to find a mortgage?
Can I sell this info for a finder’s fee to an investor?
HOA Foreclosure – No Mortgage
byu/Yamon001 inrealestateinvesting
Posted by Yamon001
6 Comments
>Can I sell this info for a finder’s fee to an investor?
You can try, but you’ll have as much luck selling someone oceanfront property in Arizona. Investors know where to find this information themselves.
The property is unlikely to sell for WAY under its market value. Likewise, there is no guarantee it will even go up for sale. Most HOA foreclosures end up getting cancelled at the last minute.
The hoa debt was paid off before the auction.
There are tons of programs aggregating this data and people digging this up daily. I personally have VAs digging public records and using data scraping tools to throw all this together every day.
Not much value here. A couple things to note, a ton of properties scheduled for foreclosure get postponed, cancelled, and the like.
Reasons can be but not limited to: loan mod, sold before auction, borrower filed BK, TRO or asked for a postponement and was granted it.
Also, HOA foreclosures are a little different, there is a right of redemption period associated with the sale. The borrower has a right to purchase the property back from the purchaser at auction within 180 days (including interest and rehab), at least in Texas. This will vary by each state, so do your research there. If there is a right of redemption period, no title company will insurer it, until after the period has passed.
In my experience, all of the seasoned investors has this on their list, and it will be bid up. Rarely, is there a free lunch or great deal being untouched at the auction block.
Finders fee is applicable when youve already found and have the property under contract, not for literally looking up public info and “finding it” lol
You other competitive bidders will bring the price uo to market value.
Properties like this pop up often. Usually something like an owner passing away with no next of kin or the next of kin abandon the property.
99% of the time there’s a multiple people who will pay 75-90%+ of the market value for it sight unseen.
Oftentimes there is HOA meddling, someone on the board/management company is able to gain interior access and bid it up.