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Answers (12)
- Robert Adams, "LVrealestateHELP"
- Contributions:318
The trustee auctions offer properties at dirt cheap prices but you have to pay cash and be willing to make a decision to buy in a VERY short time frame often not allowing proper time to research the assesments and liens. Almost every property looks like an awesome deal at the trustee auctions if you only look at the appraised value vs what they are selling for. It is the ability to tell the difference between homes that have high liens/assesments vs those that don't that will make you a successful investor at the trustee auctions.
There is also a tight group down there that buys these properties and they are known for bidding up new comers as to run off future competition. I hope this helps you understand the trustee autions a little better. Unfortunately, it sounds like you picked a bad one.
There is also a tight group down there that buys these properties and they are known for bidding up new comers as to run off future competition. I hope this helps you understand the trustee autions a little better. Unfortunately, it sounds like you picked a bad one.
- Joseph Radosta, "VegasRealtorJoe"
- Contributions:3
This is very sad to read and further concretes the fact that buying at auction should require a license or a minimum of a class explaining the dangers of not properly researching the liens on the property. I am very sorry this happened to you honestly and I wish you the best of luck cleaning this up and I hope it costs very little to do so....
- Damon Botticelli, "DBotticelli"
- Contributions:121
You're not going to like hearing this, but not only are you going to have to pay the 9 months of dues, but you'll probably get hit with the most outrageous and exorbitant collection fees you've ever seen on top of the 9 months of dues as well as any fines to boot.
HOA dues are $40/month so you think worst case is you'll end up paying $360? Think again...it'll probably be closer to $3600.
The current laws hurt the hoa, hurt the buyer. hurt the housing market, but wow are they great for the collection agency/attorneys who have been raking it in big time since 2007.
HOA dues are $40/month so you think worst case is you'll end up paying $360? Think again...it'll probably be closer to $3600.
The current laws hurt the hoa, hurt the buyer. hurt the housing market, but wow are they great for the collection agency/attorneys who have been raking it in big time since 2007.
- Michael Emery, "MikeEmery"
- Contributions:7298
It's six months of dues in Minnesota but apparently in Nevada it's nine months (use to be six, changed to nine).
- blub blub blub
- Contributions:145
You're right Mack. I was thinking that an official lien was filed against the property and, if so, that could be found in public records or title search.
- John Brassner, "HouseOfVegas"
- Contributions:147
Well, you are the responsible party. That's one reason why I don't recommend people buy at the trustee auction unless they are very experienced and have funds for unexpected oopsies, like HOA liens. Unless there is a very unique property coming to auction that you desire, the marginal difference between auction price and market value isn't worth the risk for most investors. As you have probably learned, there are a ton of people bidding on a increasing smaller number of properties which brings the sale price up towards market but none of the liens are wiped out except for the first (see http://www.houseofvegas.com/2012/01/26/glut-of-las-vegas-home-inventory-you-might-have-been-misled/ for more info about lack of auction inventory) As someone said below, you might want to talk to an attorney or just try your best to negotiate those liens down.
- Mack McCoy
- Contributions:1118
Cindy, it's not really a separate lien. HOAs in some states have a statutory lien for up to six months of any unpaid assessments. (I'd be interested in hearing if this is not true in any state).
So a title search wouldn't pull this up, but I think it's safe to assume that if the property went to a foreclosure sale, there's at least six months of delinquent HOA dues on the unit.
So a title search wouldn't pull this up, but I think it's safe to assume that if the property went to a foreclosure sale, there's at least six months of delinquent HOA dues on the unit.
- Craig Fialkowski GRI ,CDPE, "craigfial"
- Contributions:573
Now that are the new owner, I recommending that you seek legal advise on this. There are some laws that might help you, and you will also need to put on your negotiator hat, although its hard to negotiate in a weak position. I hope it works out for you, but this is typical of novice investors who purchase at auction. See it all the time.
- blub blub blub
- Contributions:145
A title search should show any liens on a property. Also, many states have county websites that will show any lis pendens (suits/liens) notices filed against a property.
- Cindy Quinton, "Cindy Quinton"
- Contributions:1333
How would one check for such leins before bidding on a property?
- blub blub blub
- Contributions:145
It is possible that you could be responsible for fees owed to the HOA as the new buyer. In my area, a buyer can be held responsible for up to 6 months of back HOA fees/fines. You will have to check with the laws/rules for Nevada.
- Michael Emery, "MikeEmery"
- Contributions:7298
I did a search on another real estate website (Trulia) and the consensus of answers seemed to say the new owner assumes the past due HOA assessments. However this shouldn't be construed as legal advice, so talk to a lawyer.
i recently bought a las vegas house at trustee sale. there is a huge hoa lien against the house. i
thank you,
LMM
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