re: Woman loses home after HOA auctions nearly $500K home for $30K

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Also, you're the scum of the earth for making me defend a HOA.

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I have zero problem with the mortgage company foreclosing on this woman, especially if she sat there for 4 years and didn't pay. That is absurd. (And yes they should have taken care of their business to avoid this from happening) My problem is still specifically with the HOA having first pecking rights. No way should that be the way this works. (Obviously it was based on the fact that it happened but still) So if you defend a HOA that is on you....They still suck and are the scum of the earth.

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I'm trying to estimate how much that could be without knowing the details, then figure out over 4 years, just how much money she "saved" by not paying a mortgage/HOA.

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Using a calculator online if she put zero down (has PMI) for a 500k home at 5.00%, she'd have roughly a $3,200 a month mortgage.

HOA is probably anywhere from $200-$600.

I'd say at most she's got a $3,800 monthly payment.

I don't know when she bought this though. If it was after 2008 recession, she definitely had to put something down.

Anyways, that is $182,400 she hasn't paid over 48 months.

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I am less concerned with that than the fact they auctioned a $450K-$500K house off for $30K just to collect the HOA fee. Wouldn't you get the house appraised and then set the minimum bid at or just below the low end of the valuation and then go from there?

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The HoA would owe her any difference above what she owed.

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I'd say at most she's got a $3,800 monthly payment.

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Well shite, I wasn't that far off. Granted you said at most, and I said 44k was conservative, but close enough.

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Anyways, that is $182,400 she hasn't paid over 48 months.

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Dang. So yea, let's focus on the near $200k possible savings before feeling sorry for this little old lady.

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The notice of delinquent assessment lien was recorded and mailed on October 1, 2014.

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That means she was delinquent for YEARS before this date.

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the auction occurred on February 22, 2018.

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I am guessing she lived FREE for at least 7 years. She paid no HOA, no mortgage, no taxes, and I am sure no repairs on the home.

The reason it sold so cheap is that the new owner is responsible for all back taxes correct? Also responsible for any repairs needed which he can't inspect before buying it. Lastly, just because she owes 450-500k on the home - does not mean it is worth that much. (Zillow is far from accurate). A person with poor financial sense like her that ignores her problems may have a second mortgage on the place as well.

That guy took a chance when he bought it, and now he is tied up in court trying to evict her.

I am glad I did not buy it.

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leaves an association board no other option but to exercise the collection process put into place to protect all residents

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Aren’t the ways HOAs protect residents is to make sure people keep up their properties? Do they think someone that buys a house for pennies in the dollar is somehow a better solution than the former owner?

$30k for a house worth $500k? How does that happen?

Weird story

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I am guessing she lived FREE for at least 7 years. She paid no HOA, no mortgage, no taxes, and I am sure no repairs on the home.

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If it is closer to 7 years, that would put the estimate on how much money she saved at $319,200.

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The reason it sold so cheap is that the new owner is responsible for all back taxes correct? Also responsible for any repairs needed which he can't inspect before buying it

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That would make a bit more sense.

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HOA folks, doing something like this is a sure fire way to get yourself all murdered and chopped up into little pieces. Just a heads up.

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Like what?

The HOA had to notify the mortgage company. If they did not respond with a bid sufficient to cover their lien then they messed up.