Simulation: a fictional property for practice.

A Nevada HOA foreclosure: does the mortgage survive?

An HOA forecloses on a condo for unpaid dues. The opening bid is $9,000. Check what stays with the property.

A fictional condo at an HOA foreclosure sale in Nevada.

• Sale: HOA (owners’ association) foreclosure, Nevada
• Opening bid: $9,000
• Value as-is: About $240,000
• First deed of trust: $195,000 owed to a bank

Mission 1: The lender paid the HOA’s priority share. Does the mortgage survive?

County records show the lender paid the HOA’s priority share (the part of the HOA lien that comes first) 10 days before the sale. What happens to the $195,000 first mortgage?

• It survives: I’d own the condo subject to the $195,000 loan
• It’s wiped out: HOA sales always wipe out the mortgage

A $9,000 condo with a $195,000 loan attached costs $204,000 or more. That’s why most HOA sales with a paid-up lender are a pass.

Mission 2: If you win, when is it yours?

What happens in the first 60 days after the sale?

• The former owner, or a lender ranked below the HOA lien, can redeem by repaying my price plus 1% a month and certain costs
• Nothing: I get the deed the same day and can start renovating

Plan for a 60-day wait, and spend only on what the law repays if someone redeems.

With the mortgage surviving, would you bid?

Buy, investigate or pass? Work through the drill to see what an experienced investor would weigh.