Down payment gifts and HOAs

I do have some interesting tid-bit stories to just tuck away for extra knowledge.  Since a few of you are heading out of town soon, here is some food for thought on the airplane.  The National Association of Realtors reported that in 2013 about 27% of people who purchased their first home received a cash gift from a relative or friend to help with the down payment vs. in 2012 only 24% used a gift.  This was the highest on record and showing an upward trend – so have those gift letters ready!!!  And…

Watch out for the HOA – apparently the Nevada Supreme Court upheld a law that allows HOA’s to foreclose on homes ahead of first mortgage providers, solidifying “super lien” priority for HOA claims in Nevada – what is going on, you say??!  The court ruled that an HOA super-priority lien is a “true super-priority lien” and that a properly conducted foreclosure on the HOA lien extinguishes first deeds of trust.  The case in question involved a $6,000 lien that was foreclosed upon by SFR Investments, wiping out an $880,000 first lien held by U.S. Bank (Rob Christman Report, MMG).  Apparently, there are approximately 20 states in the U.S. that acknowledge “Super liens” which could pose quite a risk for lenders, servicers and investors in the industry.  So, who said an HOA doesn’t have a little power!!

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