I have always said that we should wait and let the banks and mortgage companies finish their foreclosures (all 5 had been filed on) and collect from them as we already had liens on the units.
My calculations are that we would have to hold and rent out those units for between 18 and 20 months before we 'broke even'. At the time of the 3/30/12 auction Juan Reyes owed $14,010.18 to the Assn. in past due dues. We bought the unit at our auction for $200 and got title for it 7/16/12.
Today Deutsche Bank got their 'Final Judgment of Foreclosure' for the #705 unit, and one of the 5 that we 'own'. So 'Our' condo is going up for sale again at 11 a.m. on Nov 28th. We were able to rent it out for a few months but it is quite likely that we will not be able to collect a dime from Deutsche Bank as we stepped in front of them and in effect wiped out the years of unpaid dues that Reyes owed us ($14,010), we never even came close to recovering what was owed to us by Reyes.
Now we will incur additional legal costs in either contesting the sale or transferring the title quietly to Deutsche. We got a worthless Certificate of Title on July 16th when Bay County issued it to us for winning the unit at auction for $200.
In the coming auction Deutsche Bank will bid a minor amount on the condo and if there are other competing bids they will simply increase their bid all the way up to the $18o,244.50 owed. They will in effect take back the unit and place it with a realtor to sell it for about 45% of what Reyes paid for it. Our certificate was always worthless and subject to the claims of the first mortgage holder, the other 4 Certificates of Title are equally worthless. We don't really own the units and we never did, the most we could do was rent it (them) out as long as we could, in this case just a few months.
If you want to keep up with the various auctions for foreclosure see: https://www.bay.realforeclose.com/index.cfm
Top: is 'Final Judgement of Foreclosure page 1 of 4 pages, to view all 4 pages go to: http://tinyurl.com/9xsrljd
Bottom: is our Certificate of Title
right click for larger image, then open in new window:
Misc: The units we now own and their original owners are-
506 - Grass
701 - Jarrett
401 - Thomas
702 - Ussery
705 - Reyes
Here is a short blurb about a long article in the Orlando Sentinel of Sept 22nd. The situation is the same for us in a condo association as those in a HOA. Two units here now belong to private parties who got them at auctions we initiated and of course we have 5 that NCC 'Owns', all 7 units really do not belong to those who purchased them at auction.
NCC simply jumped in front of the banks/mortgage companies and got a quick and worthless deed to the units. We can't sell them and can only rent them out until we in turn lose them in foreclosures. While we have 5 of them we are on the hook for taxes, insurance and upkeep to keep them in shape to rent out. We also do not get the $225 montly dues on our 'owned' 5 units.
"If the auctioned house was foreclosed on by a homeowners association, some buyers end up paying for the house only to have it later foreclosed on by one or more banks.
"We're seeing a ton of this in Orange County," said Orlando lawyer Justin Clark, who currently represents several buyers of homeowner-association foreclosures. "The banks can foreclose on these people, and they can foreclose very quickly."
But Clark said the websites fail to make it clear that homes foreclosed on by homeowner associations are going to be foreclosed upon again — next time by the banks."
See the long article at: http://www.ccfj.net/HOAFLauctiondeal.html