Rogue tenant in building/foreclosure?
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[{"id": "g20tpty", "text": "The hoa can do a foreclosure auction and the outcome would be state dependent. They would likely only get to keep what they are owed which would be limited to hoa dues, foreclosure costs, late fees, interest and attorneys fees.\n\nDoes not really matter that it is not a bank, as both will go through a similar process. Potentially HOA is faster at selling it.", "replies": [], "depth": 1}, {"id": "g210xp9", "text": "You are in a condo. Just like in a residential condo, the association can use foreclosure as a remedy to perfect its security interest in the lien. This basically means they sell the property and satisfy the owed obligation with the proceeds. Anything left over goes to the owner.\n\nRent vs buy your condo unit for your business really depends on your long term business needs. Keep in mind, you will also be increasing the overall debt burden of your enterprise (assuming you get a mortgage), which will eat up valuable capital, so I would suggest you only do this if you think you're in a good place in terms of liquidity to weather the coming storm. Also, a lender on an owner occupier mortgage will likely require a personal guarantee of the lease and/or the mortgage loan, so you may/may not qualify depending on your financial condition. Also expect to have to pay future leasing costs and capital needs into a reserve account and potentially reserve 6-12 months of debt service with the lender as well. Major banks (BofA, JPM, Wells) are extremely limited right now in the mortgage space, so you'll probably need to get a broker or tap into smaller regional banks to find the debt.\n\nBasically, buying your condo and getting a mortgage will introduce all kinds of new complications into occupying your space compared to just paying rent+cam to your current landlord. Make sure you know what you're signing up for.\n\nAll of this ignores the other complexity of joining the condo association. Depending on the financial condition of the association, you could be signing up for more costs down the road that you wouldn't otherwise have to pay as a tenant (depending on how your lease handles special assessments).", "replies": [], "depth": 1}, {"id": "g2129dr", "text": "You need title company to search see if there is a lien on that property and whether  she has additional liens besides hoa.  There can be back property taxes or even delinquent income taxes as well as other liens. From there you can assess what you want to do with the mess created.", "replies": [], "depth": 1}, {"id": "g22bfrm", "text": "I have three comments.   \n\n1) The unit might be worth to you the purchase amount that is in the lease, but it might not be worth it to a third party when it comes to sell it. The most recent data points that you have are an auction price pre-covid that brought $700,000 for a larger unit and the fact that the new owner of that unit is having just as hard a time selling it than the previous owner. That should give you the first clue about the purchase price in the lease.  \n\n2) I hope that you are accounting for the cost of the money to buy the unit on that $20K estimate. It does not matter if it is borrowed or your own money, it has a cost.  \n\n3) This foreclosure has an impact on the HOA finances. Since the delinquent unit is a large one, there is a possibility that the other unit owners might have to pay more while this is being resolved. It might also affect the marketability of the other units.", "replies": [], "depth": 1}]