$1.2 million mansion for $10K? HOA's getting in on foreclosures

[The Straight Story]

$1.2 million mansion for $10K?


Here in Florida, the Foreclosure State, we thought we'd already cataloged every genus responsible for this plague on all our houses, from the predatory lenders to the oblivious robosigners and rocket dockets to the no-mod-for-you bank Nazis. That was, until we caught wind of the HOA chasers.

The St. Petersburg Times recently profiled an opportunistic little industry that discovered a loophole in the state's foreclosure laws and is milking it for all it's worth.

Florida law allows homeowners associations, or HOAs, to foreclose on properties when dues are in arrears and does not require the HOA to notify the primary mortgage lender. Florida has 40,000 homeowner and condo associations, many struggling to keep basic services going with so many owners behind in dues. The HOA's lawyers encourage them to foreclose because, if the bank beats them to it, they usually won't see a cent.

Here's where opportunity creeps in: Since most homeowners owe less than $15,000 in association dues, the HOAs can file their foreclosure cases in county court rather than in circuit court, where caseloads are backed up. This allows the associations to get final judgment on a foreclosure in as few as 270 days verses the 617 days it now takes for the average bank foreclosure.



Read more: $1.2 million mansion for $10K? | Bankrate.com http://www.bankrate.com/financing/mortgages/1-2-million-mansion-for-10k/#ixzz1T8SlJgUf

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1. Is this the same Barry Haught?

Sure the hell looks like it...

http://florida.arrests.org/Arrests/Barry_Haught_5529772/

Eight Charged in Florida Medicare Fraud Scheme...

http://homecaremag.com/mag/medical_eight_charged_florida/

http://www.frauddigest.com/fraud.php?ident=1041...

Health Care Fraud

D.B.B., Inc.
Fred D. Ford, Jr
G.S. Care Corporation
Gold Star Healthcare, Inc.
Barry Haught (Restitution/Fines/Penalties/Settlements Paid: $14.8 million)
Renee Lachance
Hunter Livio
Teresa Martinez
Med-Care Distributors, Inc. and
Cherry E. Moody
Thomas W. Nespeca
Ernest L. Sleeth
Christopher C. Stursberg
Trans-Capital Investment Group, Inc.

Action Date: May 2, 2002
Location: Atlanta, GA

On May 2, 2002, Barry Haught pleaded guilty in federal court in Atlanta, Georgia, to charges of defrauding Medicare of $7.2 million with a durable medical goods scheme. Haught was indicted by a federal grand jury in Atlanta in August, 2001. He agreed to forfeit $14.8 million and the government agreed not to charge 23 of Haught's family members. The scheme also involved money laundering. Haught managed the Gold Star companies which included multiple subsidiaries. Haught's salesmen offered power scooters to low-income Medicaid participants. After obtaining the Medicaid information, salesmen completed certificates of need for a more expensive wheelchair. Physicians' signatures were often forged. Salesmen received a commission from the payments, but delivered a less expensive scooter or no scooter to the patient.

[SoCalDem]

2. Won't the mortgage holders eventually foreclose on the HOAs?

The bank/mortgage company still is owed the purchase price, since the "homebuyer" did not OWN the house ...they were merely "renting" it from the bank/.mortgage company.. The HOA fees were owed to the folks running the scam, to keep the place pretty & well watered. The HOA can slap a lien on it, but I cannot see how they can foreclose & seize the house and make the occupiers move.