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leoincarolina

Simultaneous foreclosures

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Is anyone familiar with laws preventing simultaneous foreclosures? State of SC.

 

One is a HOA based foreclosure which was filed a few months ago. Second is a lender foreclosure. Very deep into the process of that one but are currently working towards a modification, so they have hit the pause button for now.

 

Wouldn't it be part of the lis pendens process(or some step) that would prevent this? Or does this sometimes happen, and it just becomes a race to the finish line to see who wins? The HOA did not appear to answer the complaint that was served them and pursue a claim within that foreclosure.

 

thanks so much

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Nothing prevents simultaneous foreclosures. Whoever is in senior lien position over the other, will prevail (With certain exceptions). Both can be valid foreclosures and either one wipes you out. The HOA is under no obligation to stop. Their foreclosure has nothing to do with your modification and as a result, have no obligation to stop. Only paying them will stop. Even if the lender forecloses ahead of them, HOA lien would survive the foreclosure.

Edited by Kuuner

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Thanks so much for the replies. Based on what I am seeing, the lender has no knowledge of the HOA foreclosure. It has not come up during modification process and public index lists no service by the plaintiff to the lender...only to me.

 

 

This can't be right, right? If hypothetically I did not satisfy the HOA demands and the foreclosure occurs, the servicing company will wake up one morning and will have lost their ownership/interest in the property.

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The HOA won't (More than likely) wipe out the senior lien holder. They will take the property subject to the senior lien. If they foreclose and do not notice interested parties, their foreclosure could be challenged.

 

A loan modification wouldn't necessarily involve anything about the HOA unless the servicer had reason to do so. If for example there was a notice of intent to foreclose by the HOA, then the senior lien holder would deal with the HOA in the mod. Typically, they would advance to cure with the HOA and capitalize the advances in the loan mod.

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