let the HOA do the work

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Posted by Kristine-CA on November 23, 2009 at 14:33:10:

In Reply to: Re: Is there another possible play here? posted by Natalie-VA on November 21, 2009 at 09:32:25:

Natalie: thanks for sharing this story. So, say an HOA gets a lien and
the property is not overleveraged. It would make sense under those
circumstances for them to take back a unit, in the hopes that they can
sell it and/or rent it in order to recover some of their losses. If an ACW
entity executes a first for the "right" amount, it seems to me that there
are some options that would work in his favor. 1) the property goes to
sale and a 3rd party buys it subject-to the first and makes payments
on it. 2) the HOA gets it back and makes payments and/or sells it
giving ACW as lender a payoff. In the meantime, while all this takes
place, he collects rent from a tenant.

JT posts some caveats regarding tax issues that have to be considered.
There really does need to be some serious arms-length created
between ACW and the lending entity. I don't know ACWs numbers so
maybe all this is moot. But if he wants to turn the deal into a
lender/note holder deal, I think he can, and perhaps salvage his loss.

Back on the day on this board, there used be about a dozen people
who knew the pros and cons of this kind of issue. I'm just throwing it
out there with my understanding, but there are people who know how
to make this work if the numbers are right. Kristine

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