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BankofAmerica filed lis pendens in July, 2012,HOA filed lis pendens in October, 2013 without naming second mortgage as defendant
Anonymous4 views3 answers
HOA foreclosed, and I purchased as third party without knowledge of pending foreclosure law suit -my bad, I know(will never do that again without lien search or lawyer). IS there a law preventing HOA to foreclose while first mortgage already has started the foreclosure and they have been properly served/summoned? They did file a lien, so their loss would be protected and is it enough of an issue to reopen the case and vacate the judgement if subordinate lienholder-second mortgage was not properly notified, which makes me wonder if the title/lien search was performed at all by HOA lawyer? Isn't it a concrete mile stone to be done before starting the foreclosure process?
It sounds like everything was done correctly and you're out of luck in this situation. There is no such law or rule that a HOA must refrain from foreclosing its lien even though the superior mortgage is foreclosing. This happens all the time because the banks are so slow, and the HOAs don't want to wait to get paid. As you realized, next time do a lien search.
Unfortunately not. The liens go in order of priority. Always have an attorney run title for you before bidding to see exactly what you are getting into
Yes. Probably so. Done properly, there probably is something that you can be done to recover your money. The HOA was precluded from filing its action while there was an existing senior mortgage foreclosure and lis pendens. Please immediately contact an attorney who is knowledgeable in the area of real estate and mortgage litigation to analyze the situation and evaluate it.
