Liability For HOA Or Condo Association Dues After Foreclosure
Several people who are contemplating voluntary foreclosure have asked me whether they should continue paying their homeowner or condominium dues during the foreclosure process. I have recommended that homeowners stop paying homeowner dues if they are voluntarily surrendering their homes to their mortgage lender. I believed that the homeowners due would be paid by the party who ultimately purchases the property from the mortgage lender in order to clear the HOA's lien on the property. I have changed my opinion after another attorney pointed out a Florida statute that may impose personal liability for homeowner's dues. Florida Statute 718.116(1)(a) states that homeowners are personally liable for assessments by a condominium association. Florida Statute 720.3085 states that homeowners are personally liable for assessments by a homeowners association.
I do not practice law in the area of homeowner association law. I am unaware of any condo or homeowner association which has pursued a judgment against a former owner for unpaid assessments or dues after the unit has gone through the foreclosure process. I am concerned about this liability because the condo and homeowner statutes provide for awards of attorneys fees to the association's lawyers for their collection of unpaid dues and assessments. A relatively small association debt could become a substantial judgment when potential attorneys fees are included. Therefore, the more conservative strategy for someone anticipating foreclosure is to continue paying homeowner's association dues through the date of sale.
Real estate taxes are different. Tax liability is usually much greater than the amount of association dues, and I am unaware of laws permitting the government to pursue personal liability for unpaid property taxes. I continue to recommend that people who are voluntarily surrendering properties to their mortgage lender through foreclosure not pay real estate tax bills.
posted by Jonathan Alper, asset protection and bankruptcy attorney, Orlando, Florida
What if your just late by 3 months but still paying? Can they foreclose on your condo or just put a lien against it?
What if your just late by 3 months but still paying? Can they foreclose on your condo or just put a lien against it?
Aileen, Yes they can still go forward with foreclosure.
So an HOA can issue foreclosure proceedings. How can they given they position behind the lenders?
We are hoping to buy a condo or townhome in the Fort Myers area this year. We are concerned about buying a property and having to make up prior owners delinquent HOA fees. How do we know an association is solent and the seller is not behind in his HOA payments? Thanks, Cindy
I have recently been threatened by my homeowners association
about interest on an assessment.
I am current on all my dues however they are trying to collect interest on one that was late 1 yr ago saying that they are intitled.
it's not the money, its just not fare.
is there a way to get around this?
Thanks for help
I called you a few days ago, and you said you could tell me what I should do to protect myself for $400. Well, your post up above seems to be saying you didn't know an HOA could turn a lien and a foreclosure into a money judgment.
It doesn't make sense to me either. It would seem to me if a HOA attorney filed a lis pendens, he should have to sell the house on the court house steps and not just turn it into a money judgment. (by the way in our association, the attorney got paid about $2,000 by the association to do the foreclosure - so it is no skin off his nose)
I am not sure this practice isn't against the Fair Debt Collections Act. A lis pendens lawsuit is supposed to have an interest in the property.
we bought a property at the foreclosure auction and we know that third party buyers of foreclosed property are responsible for all maintenance fees due by prior owner on this particular property the by laws states that the third party buying property is not responsible for paying outstanding maintenance fees that this expense should be absorbed by all owners of the community. Q. In this case does Florida Statutes overrides the by laws ? thank you
I bought a condo unit in a 55+ community located in Palm Beach FL, in a court auction which was foreclosed by the primary bank. I sought legal advice before buying it and the attorney said: as long as the associations were listed in the final judgment of foreclosure, I was not going to be responsible for the previous balance, only for the fees from the moment I bought it. I received already the certificate of title from the court and went to the association and now, they are saying I am responsible for the HOA balance for the 2 associations they have: one for the recreational association and the other one for the Condo association.
Am I really responsible for them? One attorney said that the recreation association might have been wiped in the foreclosure but I am responsible for the condo association which is 5k+. If I had to pay these amount I am already loosing money what can I do?
If the answer is get another atorney coul somebody guide me to a good one?