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Law Educator, Esq.
Law Educator, Esq., Lawyer
Category: Real Estate Law
Satisfied Customers: 114783
Experience:  Licensed attorney practicing landlord-tenant, land use and other real estate law and litigation.
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I bought a property at an HOA foreclosure in April 2013 in

Customer Question

I bought a property at an HOA foreclosure in April 2013 in Harris County, Texas. The owner did not redeem the property. The lien holder did not redeem the property. I have now received a Notice of Foreclosure from the original lien holder - three years later. Can the lien holder do that? If so, please identify the law/statute. If not, please identify the law/statute.
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Submitted: 11 months ago.
Category: Real Estate Law
Expert:  Law Educator, Esq. replied 11 months ago.
Thank you for your question. I look forward to working with you to provide you the information you are seeking for educational purposes only.
Under Texas law, when you buy a HOA foreclosure, you take the home subject to the mortgage lien on the property. The HOA lien does not erase the mortgage lien. This means when you buy that HOA foreclosure, you take it subject to the mortgage lien on the property. The HOA liens and foreclosure does not extinguish loans that are primary to the HOA lien, such as a mortgage. So when someone buys an HOA foreclosure, they do so subject to the mortgage on the property and if that mortgage does not get paid off then the mortgage company can foreclose on the property. See Texas property code Section 82.113, which states that a person taking a property at foreclosure does so subject to priority liens, which the mortgage would be.
Customer: replied 11 months ago.
Thank you for the reply. Section 82.113 is not applicable because it deals with condominiums. This is not a condominium.I bought this property at an HOA foreclosure sale three years ago (2013) and then there was a redemption period when the property owner or the mortgagor can buy the property.What law states that the mortgage lien is not extinguished when the redemption period is over?
Expert:  Law Educator, Esq. replied 11 months ago.
Thank you for your reply.
The same code applies in Texas Property Code dealing with HOA, but it is under Sec. 209.011. The rights of a mortgage company do not disappear just because an HOA forecloses (Property owner association) and the person taking in foreclosure for HOA dues takes subject to all senior liens.

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