How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Richard Your Own Question
Richard, Attorney
Category: Business Law
Satisfied Customers: 53510
Experience:  32 years of experience practicing law and a businessman.
Type Your Business Law Question Here...
Richard is online now
A new question is answered every 9 seconds

I am on the board for a HOA in Houston, Texas. About 2 years

This answer was rated:

I am on the board for a HOA in Houston, Texas. About 2 years ago the HOA got ownership of a unit that had been under contract with a buyer/occupant who failed to pay monthly dues for several months so the HOA filed to foreclose on the unit. Here is the dilemma. Although the HOA has been paying the property taxes and is the owner of record with the Harris County Appraisal District the past owner/mortgagor does not respond to any attempts to settle. The HOA is currently renting the unit and feels it cannot sell the unit to the renter as the past/mortgagor could come back and make a claim or file a judgment and reestablish ownership of the unit. There is no evidence of any contract being filed with the county clerk as to the mortgage details with the buyer that defaulted. What can the HOA do to get first lien position and then sell the unit?

Welcome! My goal is to do my very best to understand your situation and to provide a full and complete answer for you.

Good afternoon. If the HOA has foreclosed two years ago and is now the owner of record, the HOA need not worry about the former owner. Under Texas law, a homeowner whose property was foreclosed on by an HOA and sold may redeem the property, depending on the type of property and whether such property is intended as a homestead or an investment property, but can only do so for a limited time period. Section 209.011 of the Texas Property Code affords homeowners the right to redeem the property after an HOA foreclosure sale. A homeowner of a residential property that is a single family unit may redeem a property sold as a result of an HOA foreclosure within 180 days after the date on which the association mailed the notice of the sale. The owner must pay the subsequent purchaser the full foreclosed price, attorney's fees and costs, and pay 25% above of the sale price. A purchaser of an HOA foreclosed property must not encumber the property or sell transfer it to anyone other than the homeowner within the 180-day period. Since it's been over 2 years, the HOA need not worry about the former owner and is free to sell it to the current tenant.

Thank you so
much for allowing me to help you with your questions. I've done my best to provide information which
will be helpful to you.
If I have not
fully addressed your questions or if you have any follow up questions, or if I
have misinterpreted your questions in any way,
please do not rate me yet, but simply ask a follow up question without rating so
I can provide you with a fully satisfactory answer
. If I have fully answered your
question(s) to your satisfaction, I would appreciate you rating my service
with 3, 4, or 5
faces/stars so I can receive credit for helping you today. I thank you in advance for taking the time to
provide me a positive rating!

Customer: replied 3 years ago.

I have the Trust Deed of the HOA how do I send the attachment to you to look at.

Hi there. You can either post it on this forum or somewhere on the internet like and send me the link.
Customer: replied 3 years ago.

Here is the copy of the sub-file listed with Harris Co Clerk Office -- Will this help?


R54031408/22/1995RIVINGTON TWNHM


R54031608/22/1995RIVINGTON TWNHM


X20838211/21/2003WEST MANDELL PLACE





The two year period has lapsed, so the former owner has no rights. No renter would simply need to pay the existing lien to have it released, but the former owner has no further rights of redemption.

Customer: replied 3 years ago.

"No renter would simply need to pay the existing lien to have it released,"


I don't understand the renter part of your statement. Please explain.

I'm sorry...that was a typo on my part. I intended to say that any buyer, including your existing renter, would need not worry about the prior owner; rather would only need to pay the existing lender to release the mortgage lien.
Customer: replied 3 years ago.

I'm sorry if I didn't make the situation totally clear. The existing lender is the original owner who privately financed to the second owner who defaulted and didn't pay the HOA dues causing the foreclosure in the first place. The HOA notified owner #1 who has never responded thus the Deed of Trust to the HOA.

Let's go back to the beginning.....What are your specific concerns now? If the HOA is now the owner, it can sell to anyone. No prior owner has any right to any redemption.

Customer: replied 3 years ago.

I guess that has been the dilemma all along. Another attorney was stating that there was a 4 year statute of limititations and that owner #1 (the private lender to the buyer that defaulted) could come back and retain right of ownership keeping the HOA from selling it. Sorry for the confusion. So you are saying that the HOA has total ownership rights and there is no one in the past ownership lineage that has any claim and therefore we can sell at whatever price we want?

If the HOA has foreclosed, then there is a 180 day right of redemption. After that, there is no further right to redeem.
Customer: replied 3 years ago.

Thank you for the clarification. I just wanted to make sure before I report to the HOA as we desire to sell the unit.

You're's my pleasure to help!
Richard, Attorney
Category: Business Law
Satisfied Customers: 53510
Experience: 32 years of experience practicing law and a businessman.
Richard and 2 other Business Law Specialists are ready to help you

Thanks so much for the positive rating and the bonus! I appreciate your generosity and the
opportunity to serve you! If I can be of
assistance to you in the future, just look me up and I will be happy to help!

Customer: replied 3 years ago.

I just got off the phone with the Management company and I may not have presented the correct scenario. The manager states that the problem all along was that although the HOA foreclosed due to non-payment of HOA dues, the private lender for the buyer has never foreclosed on the unit. Does the private lender have any recourse or would they have to protect their interest when the HOA foreclosed? Sorry about that, I hope this is not a major imposition.

No problem......The private lender has no rights under than as a lender....meaning that they can foreclose the lien, but if you sold the property and the lien was paid, they would have no further rights to the property.
Customer: replied 3 years ago.

Thanks so much again. Hopefully, this should answer once and for all. If I want to use you in the future how do I do so?

You're welcome...I'm here to help. You can always address your question to "SeekingtoRenderAid" and I will get it. :)

JustAnswer in the News:

Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.

What Customers are Saying:

  • Mr. Kaplun clearly had an exceptional understanding of the issue and was able to explain it concisely. I would recommend JustAnswer to anyone. Great service that lives up to its promises! Gary B. Edmond, OK
< Previous | Next >
  • Mr. Kaplun clearly had an exceptional understanding of the issue and was able to explain it concisely. I would recommend JustAnswer to anyone. Great service that lives up to its promises! Gary B. Edmond, OK
  • My Expert was fast and seemed to have the answer to my taser question at the tips of her fingers. Communication was excellent. I left feeling confident in her answer. Eric Redwood City, CA
  • I am very pleased with JustAnswer as a place to go for divorce or criminal law knowledge and insight. Michael Wichita, KS
  • PaulMJD helped me with questions I had regarding an urgent legal matter. His answers were excellent. Three H. Houston, TX
  • Anne was extremely helpful. Her information put me in the right direction for action that kept me legal, possible saving me a ton of money in the future. Thank you again, Anne!! Elaine Atlanta, GA
  • It worked great. I had the facts and I presented them to my ex-landlord and she folded and returned my deposit. The 50 bucks I spent with you solved my problem. Tony Apopka, FL
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C. Freshfield, Liverpool, UK

Meet The Experts:

  • Dimitry K., Esq.

    Dimitry K., Esq.


    Satisfied Customers:

    Run my own successful business/contract law practice.
< Last | Next >
  • Dimitry K., Esq.'s Avatar

    Dimitry K., Esq.


    Satisfied Customers:

    Run my own successful business/contract law practice.
  • MShore Law's Avatar

    MShore Law


    Satisfied Customers:

    Drafted Negotiated and/or Reviewed Thousands of Commercial Agreements
  • RGMacEsq's Avatar



    Satisfied Customers:

    Licensed Texas General Practice Attorney
  • Barrister's Avatar



    Satisfied Customers:

    15 years practicing attorney, MBA
  • J.Hazelbaker's Avatar



    Satisfied Customers:

    Experienced and trained in the area of business law.
  • MDLaw's Avatar



    Satisfied Customers:

    Experience in business law, contract law and related matters.
  • J. Warren's Avatar

    J. Warren


    Satisfied Customers:

    Experience in general business transaction and formation matters.

Related Business Law Questions