Selling HOA Foreclosed Property Back To Previous Owner
Does anyone know whether there are any restrictions when selling property bought at foreclosure back to the owner that was foreclosed upon? HOA sale.
Thanks!
Are there restrictions against? No (check your state laws to be sure).
Would I recommend it? Unless the buyers (original owners) can obtain their own financing (no Lease/Option, Owner finance, etc.), which is highly unlikely, then the answer is a definite NO!
There are all sorts of legal issues that you COULD get into by selling a property back to the original owners.
I don't know the details of your transaction, but rarely is there a case where it is a good idea to put the original owners back into the property.
A parting thought,
If they were unable/unwilling to pay the monthly mortgage before, how/why do you think they would pay you MORE each month?
Roger
Thanks, Roger. That helps. The good news is that we are not financing the original owners. We will be paid in full at the close of the transaction. So, I guess they will be the HOA's and lender's problem again if they don't keep up payments. Thanks, again for your response.