I bought a foreclosure property in Jacksonville, Florida through the Duval County Foreclosure auction. I received a past due notice from the HOA, which include fees owed prior to me purchasing the property. The HOA was served notice by the court about the foreclosure action. Florida law CHAPTER 720.3085 states that the first mortgagees who foreclose and obtain the property after sale are required to reimburse the association for 1 year's past due asssessments or 1 percent of the original mortgage debt. But it is not clear about the HOA Fees regarding the new buyer of the property at the foreclosure auction. I would have thought the HOA would have been paid from the Courthouse Proceeeds. Have there been specific court cases to address this issue?
Thanks in advance,
Unless the property sold for more than what was owed to the mortgagee, creating a surplus, the HOA would not have received any proceeds from the sale, as all proceeds would go to the mortgage lender.
What a foreclosure does is to strip all liens and entitlements to payment of inferior lienholders, such as judgment creditors, HOAs, etc. from the property.
If there was a surplus, then the HOA would have to submit a claim to be paid and the Court would have to order the Clerk to do so.
As you have noted, the 12-month limitation upon past HOA fees apply only to the mortgagee or its assigns.
Robert, there are many cases construing the application of 720.3085 and more than what can be covered in a website inquiry. I suggest that you confer with an attorney, or, if funds are so tight that you do not want to pay a consultation fee, see about the state or Duval County Lawyer Referral Service, which is a way to obtain a consultation for minimal cost.