Real Estate Law
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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.
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I have the Trust Deed of the HOA how do I send the attachment to you to look at.
Here is the copy of the sub-file listed with Harris Co Clerk Office -- Will this help?
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.
"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 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.
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?
Thank you for the clarification. I just wanted to make sure before I report to the HOA as we desire to sell the unit.
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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.
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