Tuesday, March 9, 2010
The Home Owners Association (HOA) and Condominium are desperately seeking ways to get money by introducing a new tactic called "reverse foreclosure" which compels banks to pay association fees.
According to the process, when a borrower stops paying the mortgage, banks delay taking the property into foreclosure. When banks delay, the association fees are neither paid by bank nor the former home owner. As a remedy to this, the association takes over the title and files its own foreclosure notice. But the association doesn't have rights to sell the property due to bank's lien to it. So the association moves to court, hands over the property and asks the judge to give back the title to the bank.
When the judge gives the power to bank, they are entitled to pay the fees. This technique is becoming popular in many parts of the country where there are a lot of foreclosed condos, point out experts.
According to the process, when a borrower stops paying the mortgage, banks delay taking the property into foreclosure. When banks delay, the association fees are neither paid by bank nor the former home owner. As a remedy to this, the association takes over the title and files its own foreclosure notice. But the association doesn't have rights to sell the property due to bank's lien to it. So the association moves to court, hands over the property and asks the judge to give back the title to the bank.
When the judge gives the power to bank, they are entitled to pay the fees. This technique is becoming popular in many parts of the country where there are a lot of foreclosed condos, point out experts.
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posted by Real Estate Investing @ 12:52 AM
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