@mrchamp103 wrote:
Well let's make sure we are on the same page. The BANK itself sent me a final foreclosure letter in which it stated that on 6/09 it was going to sell it at a public auction. It seems that the HOA bought it at an auction on 6/09 and then became the owner. I say this because after 2009 that is when the HOA seemed like it was the "owner" and sent me ANOTHER foreclosure letter ALSO stating that it will be in auction again in 2011.
1. If the bank already sold it at an auction in 2009 (which I believe because how else will the HOA be the owner suing me and the bank foreclosured it in 2009 and stated it was going to auction) and the HOA bought it, then why aren't they legally the new full owners? They accepted all responsibilities at the auction including foreclosure, liens, etc..
2. How is it legal that the HOA be a "temporary" owner and rent out the property? What if something illegal would of happened after I figured it was sold, I would have been legally liable for any thing under my name.
3. Why wasn't a CT be given to me in 2009 when the HOA I believe bought it at auction? Why wouldn't it work like any sale (let's use a car example). Once you transfer property from one owner to another, a title always has to be done and given to prove who an actual owner is and registered too.
If the bank had f/c originally in 2009 (full foreclosure done correctly) then a CT would have been issued at that time. I am not saying that there couldn't be an error in the record. But, from what you describe, the bank did not correctly complete their f/c in 2009. In fact, it looks like they started the f/c and then the HOA ran in a did a f/c and the bank didn't complete their f/c until 2011. Hard to tell without looking at documents.
When the HOA f/c it is NOT a regular puchase. All they are doing is f/c on the lien they have from past due HOA fees. If you owned the property free and clear at the time the HOA f/c, then the HOA would own the property officially and without a cloud on the title. However, most of the time when people lose their homes to an HOA f/c, the same people have a mortgage that is also unpaid which creates the cloud on the title. The bank still has the right to f/c on their mortgage lien and when they do, they own the property. In order for the HOA to own it without a cloud on the title the HOA would have had to pay off your mortgage lien. The temporary part only comes in because the HOA didn't pay off your lien or clear the title. There is a whole process to clearing the title that most HOA's don't do - that's why the ownership is temporary, it allows for the bank to come in a finish their f/c.
What is different about your events is that the bank issued a release of mortgage at some point during the two foreclosures (HOA f/c and bank f/c). That is something you should speak to an attorney about to see if this is the final f/c and why you have had to go through this second f/c after the bank had already released their lien. (Usually this is a result of an error in the f/c process).
A transfer of a property is the same concept as a transfer of a car title. But there are a lot of ways someone can mess up the process when transferring property (for example people on this board are continually transferring properties with Quit Claim deeds - one of many ways to mess up a title).
When you have a f/c involved (or two f/c's by two different entities on the same property) it is incumbent upon the buyer to make sure they are getting clear title. The HOA's don't care. They take the bad title's because they only need a limited amount of time to collect their fees and attorney fee's. The HOA knows that the title is bad, they don't need a good title to rent it out. (BTW, I don't agree with the process, just stating it for what it is now) One of the things the buyer has to do after buying at auction is to clear all liens and encumberances on the title after the purchase. That takes time and money. It is done after the official auction. HOA's are not likely to do this step at all.
I sell f/c's (I'm a Realtor) and one of the things that I see on many foreclosures is bad title. Banks trying to transfer without clearing the liens or even clearing the f/c mortgage lien! Many closings have had to be delayed to get the title work corrected. Most banks will not voluntarily correct the title without an attorney from the buyers side pushing them to do it because it costs the bank money and time to clear the lien properly.
Back to your situation: have a good real estate attorney look at your entire file from the first notice and all documentation through to the last date. You may have a case where the CT should have been issued when the mortgage was released. Maybe not. But talk to a knowledgeable attorney that handles real estate (not a consumer attorney or general attorney). Get one that is familiar with f/c's in your state. See what remedies you have, if any.
