Is there another possible play here?

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Posted by Kristine-CA on November 20, 2009 at 23:22:24:

In Reply to: Well..... prolly not posted by JT-INimit on November 20, 2009 at 21:22:03:

Hi JT. What if an ACW Entity did execute a mtg. lien in first position,
ahead of a what will probably and eventually be a lien by the condo
assoc? What if he rents during this period, collecting income, and then
lets the condo association file their lien and then foreclose?

My questions, since I'm not a condo person and don't know the
mindset of the HOAs:

1) Do HOAs typically foreclose and take back properties subject-to? Do
they just let them sit?

2) If the HOA forecloses and takes it back subject to, isn't the ACW
Entity entitled to payments per the terms of the note? If a third party
buys it at sale, they would take it subject-to. Someone takes it
subject to the first mtg/note.

I haven't worked all the way through this yet, but it seems to me that
by filing a first, ACW gets the upper hand? Yes? No?

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