The HOA filed a lien on a property, which went unpaid, and then foreclosed (no bidders) and took ownership (subject to Mortgage). Bank finally forecloses after about 16 months, and property is sold through county foreclosure auction to a 3rd party buyer. During the 16 month of HOA ownership, the property was vacant since HOA could not find a tenant.
1. Does the HOA’s foreclosure remedy wipe out the lien that foreclosed upon? Are any of original lien’s fees still collectible?
2. While the HOA owned the property, can it attach the monthly assessments fees to the property even though itself is the owner?
3. What association fees is the new 3rd party owner responsible for?
(This is in the State of Florida).Michael, thanks for your answer. To clarify your answers: 1. The HOA foreclosure does not wipe away the lien, and the liens are still collectible from future owners. 2. The HOA can not assess monthly assessments against a property during the time it owns the property. 3. The HOA association and new owner are coliable for assessments that due to the HOA association. If your answer in #1 were true, what did the HOA foreclosure action really do then? If it was a mortgage foreclosure, it would have remedied the loan judgement, so why isn't the same true in a HOA foreclosure? If the original HOA foreclosure lien is not paid, can the HOA reforeclose again for the same lien?
This question would require a lengthy answer and there are certain keys facts that have been omitted. I would encourage you to arrange a full consultation with a real estate or foreclosure or association attorney to get definitive answers based on all the facts especially if you were the buyer, as you may have $$$ riding on the right advice. With that caveat, I would generally answer: 1. No, yes; 2. No; 3. All fees after date of sale and co-liable with former owner as to back fees.
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