HOA foreclosure

[chunying]

What is the name of your state (only U.S. law)? NV
my property in NV is in foreclosure now, waiting for the legal process to go through, in the mean time, the HOA has put lien on the property, and notify me that if the overdue amount is not paid in 10 days, they will foreclose. Can the HOA foreclose my property? what will happen when the lender file the foreclosure paper and the HOA has already foreclosed on my house? anyone can help me? I am worried sick, thanks.

[FlyingRon]

Yes the HOA can foreclose.
It doesn't make much difference to you whether the mortgage lender or the HOA instigates the foreclosure, the results will be the same. The property will be sold, the money distributed to the secured interests in the order of their seniority (typically the tax man first, then the mortgage, then to the HOA). If there is any money left over, you get it. If there is not any money left over those left short can still come after you for the deficiency.

The only thing that's the least bit complicated is the lender, unlike the HOA, probably can proceed through a non-judicial "power of sale" action. Of course, the HOA can bollux that up by contesting it. This might actually give you some time, but frankly I wouldn't count on it.

[chunying]

Thanks for the response.
In this unprecedented housing crisis, which type of foreclosure is better for homeowners, judicial or non-judicial?

[FlyingRon]

Neither is "better"

The non-judicial foreclosure typically progresses faster.

[Nysmenu]

it you have to do it, let it be judicial, which means they have to take you to court to prove their case, in non they don't. they just come and throw you out. but if they do throw you fraudulently, file a counterclaim.

[FlyingRon]

As with many of Nysemu's threads the above is incorrect.

In a judicial foreclosure, all the proof they need is what ever obligating document (mortgage, HOA deed documents) and an attestation that you've not paid. While you have the ability to appear in court, if you've not paid, the foreclosure is going to be routinely granted.

In a non-judicial foreclosure they don't just "come and throw you out." They still have serve notice, post, and advertise. In actuallity all it saves is scheduling a court appearance. A trustee (one is almost always used, as the bank can sell because that precludes them from bidding) still must conduct a public sale. You still have the right to cure and stop the sale, you have the right to challenge failure to provide proper notice (even after the sale), and obviously if there are other defects time to challenge in court.

So, you've got about the same procedural gimmicks available to you via power of sale that you have in a judicial foreclosure.
The truth is, if you are in default, you're only really going to stop it by paying. The rest is just a delaying tactic.