Posted by Ronald * Starr(in No CA) on July 03, 2003 at 20:26:28:
Is there something that makes you suspicious? This is the sort of action I would expect a HOA to take. They try to help their members along. This is extremely common. I’d try talking to the people doing the management of the association in a friendly way. Point out that you have an interest in the property which is more than just that of a renter. Just ask for a heads up if payment are not made so you could make them to protect your position.
Assuming that your option allows you to pay the mortgage and other obligations if the owner is not doing so. Or, if an attorney thinks that the state law allows you to do so.
So, at least as far as the HOA goes, I don’t see a problem.
If you have a memorandum of option recorded in the county land records, the world is on notice about your interest in the property. Typically no body else would be able to get a deed to the property without owing you the right to exercise your option at your option price. Thus, few knowledgeable people in their right minds would pay much for the property.
This is a legal issue and you may well want to get good advice from an attorney on the situation.
Good InvestingRon Starr***