HOA + Foreclosures + Property Manager?

[_Charles_]

So I came from our monthly HOA meeting today, and I am faced with an interesting challenge.

Our HOA is investigating the possiblity of "beating the bank" to Foreclosure on some properties. Once the foreclosure is completed, our HOA would technically "OWN" the property. They would then rent it out for a nominal charge to a qualified renter on a month by month basis till the bank forecloses on the house.

In the meantime, the house would be maintained (Cut lawn, etc) by the renter. The HOA would not pay a dime on the mortgage.

basically looking for a way to keep maintenence costs down while a house is in the foreclosure process (which can take years sometimes).

Anyways, looking for a property manager that might be able to shed some light and possibly manage a few homes.

And before you ask, yes, we already have a HOA/Real Estate attorney.

Thoughts?
Charles

[Joe]

Your HOA may want to look into the consequences of those types of thoughts before taking action...


If your HOA does this it is taking on some HUGE liability issues which could cost the homeowners dearly... Mainly because their current liability coverage for the HOA wouldn't even come close to covering them in the commercial venture of renting homes... Not to mention the other liability issues that come into place....

I would advise my HOA to not even think about it. HOAs are not designed for that... Their job is to keep the community grounds / resources looking nice and functioning properly. Not be in the business to scam homes from banks for hundreds of dollars and then rent them in a commercial venture...

What do they expect to do if they rent a home on a 6 month contract and the bank forecloses in 2 months?

[TNathe]

haha, ermmm, how can a group of people just up and rent the banks house out like that. BTW, explain how the HOA owns the property for me please. The bank will want a cut Im sure, IF you can talk sense into them. Banks arent known for good business practices. They prob could give two shits if they get any money on renting it while it is sitting on there books and they def probably wont let you guys do that.