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When an Homeowners or Condo Association forecloses on a home, which liens go away?

Fort Lauderdale, FL |

I know the FIRST mortgage does not go away after an Association Foreclosure, but this question involves the other liens on the property.

A few questions:

1. When a Homeowner or Condo Association forecloses on a home, does the second mortgage get wiped out? How about any HELOC or credit lines (after the first mortgage? Which liens remain in tact on the home? My assumption is ONLY the primary mortgage, tax/city liens, etc.

2. If the Association forecloses, and a third party purchases the property, but the bidding at the Foreclosure sale goes HIGHER than the Association foreclosure amount, who gets to collect the excess money?

3. Also, does it matter what came first... the HOA lien or Second Mortgage lien? Lets the Second Mortgage got its lien in 2009, and the HOA filed its lien in 2011. When the HOA forecloses, does the second mortgage go away in this case even though the second mortgage happened before the filing of the HOA lien?

Attorney Answers 4

  1. The liens need to be examined to determine priority. Superior ones remain, and subordinate ones are eliminated. Excess proceeds from the sale goes to the foreclosed owner or subordinate lienholder. Application should be made to the trustee who held the sale.

  2. The answer to this question is extremely fact intensive. An attorney needs to review the land records to determine what liens are wiped out and what liens remain. If this question is of great importance to you ,you should seek out a real estate or title attorney in your area.

  3. I can't answer your question about your property specifically without looking at all of the documents, the public records and the court file (for which I would charge a fee). I can give you some general information. In most instances, liens in Florida attach in date order based on when they were recorded in the public records. Property taxes are one example of an exception to that rule. There is no Trustee in a Florida foreclosure as it is a judicial process. When a lienholder forecloses, they usually foreclose only those liens that are behind (filed after) their own. It would be unusual for a homeowners association to foreclose a first or second mortgage unless the HOA lien somehow pre-dated them (also unusual--but strange things happened in the last 10 years). The Clerk of the Court should have a record on how the proceeds from the sale were disbursed. If there are excess funds that the Clerk is still holding, they might be able to tell you if and how you can apply to have them released to you.

    The comments added are for general informational purposes only and are not intended to provide or be a substitute for legal advice, or create an attorney client relationship.

  4. The answer to the question requires a title search and a review of the association documents and court record.

    This communication is not intended to create an attorney/client relationship. It is always recommended you consult an attorney in person to discuss your case. The Law Offices of Stage & Associates practices state-wide and represents homeowners and community associations. Please visit our website at

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