Re: Is there another possible play here?

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Posted by Natalie-VA on November 21, 2009 at 09:32:25:

In Reply to: Is there another possible play here? posted by Kristine-CA on November 20, 2009 at 23:22:24:

I saw something similar to this happen a few months ago. A Florida condo we were interested in was in foreclosure for both the first and the condo association. The condo association foreclosed first and took title subject to the first. For the life of me, I couldn't figure out why they would do that. Not only did they extinguish their lien by taking title, but the unit was still over leveraged. In the end, the first lender did foreclose and take title.

As far as WHY would a condo association do that, some speculated that they intended to rent it out to get some cash flowing in. They didn't do that because it was missing appliances and they didn't want to dump money into it. That was just rumor, so I don't know the real reason they did it. I suspect it may have been bad legal advice. The only ones who made money were the lawyers.

--Natalie

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